Lamborghini and Bentley\'s plans to launch their respective SUVs stalled by the Volkswagen Group
|   Wednesday, October 31, 2012
A Lamborghini and Bentley automobiles plan to launch a new SUV are set to be put on hold for the moment. This is a desperate measure by the German car maker; Volkswagen Group to save money in the cash strapped European market. The German car maker is currently feeling the heat of the economic downturn in the market and has been taking desperate protective measures to avoid ending up bankrupt.

Bentley and Lamborghini had unveiled their grand plans to unveil a new SUV at the Beijing and Geneva motor shows this year and the plan was approved by the Volkswagen Group's high officials only to be cancelled recently stating these reasons.
The concept vehicles had been named the Lamborghini Urus and the Bentley EXP 9 F SUV.

Lamborghini automobiles had plans to triple its global sales with the launch of the SUV however the plans seems to be a distant dream as of for now. Officials from Bentley have reported that the plan is currently on hold while sources from Lamborghini have claimed that the Volkswagen Group has not yet confirmed the plans to launch the Uris. Lamborghini has been steadily losing money since 2009 and hence undertaking any new projects is a risky prospect at this moment for the parent firm.

The two auto makers had plans to enter into the SUV segment following the footsteps of sister entity Porsche. However, the current economic crisis, the high cost of development, stiff competition in the segment and the limited scope for a new SUV in emerging markets has deferred the plans. The current economic crisis in China has also played a part in this decision. China is going through a rough patch and the Chinese market account for close to 10 percent of the sales. Therefore Volkswagen could not take such a he risk at this particular moment.

The Bentley project is not likely to start before 2015 and close to 4,000 SUVs are planned to be produced by 2016. With this pace, large scale production is impossible and the company has to gain the confidence of the mother firm before large scale investments are made. The ultimate competition in the premium SUV segment is being provided by the Fiat Group's Maserati brand, Mercedes Benz, BMW, Audi etc.

There is however a bleak line of hope left as the final call is scheduled to take place in November this year. If things go as planned, the projects will be stalled, however if Bentley and Lamborghini can convince the higher authorities in the Volkswagen Group that this will be a viable investment, this could be a completely different story. Despite the economic downturn, the Volkswagen Group has been performing quite successfully and this is mainly due to the positive decisions taken by the Board of Directors.

The production of the Volkswagen Passat, the most successful sedan from the Volkswagen Group has been stalled since the past two weeks and this has been done to cut off productions by 300,000 units which put the total number of vehicles manufactured to 9.4 million.
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