Restructuring / Turnaround Strategies Case Study

Automobili Lamborghini: Growth After Bankruptcy

Abstract:
Though Lamborghini began outstandingly well in 1964, the leading player in market for sports cars, witnessed numerous ups and downs over the years. From the early 1970s until 1998 the company’s underperformance resulted in change of ownership six times in a span of 16 years. And the company went bankrupt for four years between 1978 and 1981. Following the bankruptcy, in 1998, Audi AG, a subsidiary of Volkswagen became the owner of Lamborghini. Under the leadership of Audi, Lamborghini oversaw increased profits with the highest sales record in the history of the company in 2006. In 2007, Lamborghini is all set to outshine its immediate rival Ferrari, which had wider presence worldwide and made better sales than Lamborghini. The company is formulating various strategies to make its presence felt in different corners of the globe other than the US, which remains its most important market. However, the analysts believe that Lamborghini needs to balance higher sales with brand exclusivity.

Pedagogical Objectives:

• The case discusses Lamborghini’s evolution over the years under changing owners
• The case comprehends Lamborghini’s initiatives to widen and strengthen its brand awareness
• It analyses Lamborghini’s strategies to outrival Ferrari
• It analyses whether Lamborghini would retain its luxury brand image in its race to increase sales.

Keywords : Automobili Lamborghini; Luxury Passenger Cars; Brand Exclusivity; Bankruptcy; Volkswagan's Audi; Versace; Asus; Merchandising; Prestige Cars; Ferrari; Restructuring / Turnaround Strategies Case Study; Barnd awareness; Higher Sales; China; India; Lamborghini