Automakers on the whole are suffering as a result of the pandemic. Lamborghini, surprisingly, doesn’t seem to be one of them. After shutting down their factory for a time, and then producing personal protective equipment, the purveyor of luxury Italian sports cars just reported its best September ever after delivering 738 vehicles.
Your stock portfolio may soon be able to take advantage of that unabated success, as Reuters reported this week that Volkswagen is “drawing up plans to carve out Lamborghini and has sounded out bankers and potential investors about listing the Italian sports car maker on the stock market.”
Currently, you can’t buy stock solely in Lamborghini, as the brand is under the Audi umbrella, which itself has been majority owned by the Volkswagen Group (the conglomerate, not just the Volkswagen brand) until they took full ownership this summer. In short, it seems VW has been working to spin off Lamborghini for a while, and an initial public offering may soon come to pass.
So what’s the play here? Why remove Lamborghini from the stable and put it on the stock market alone? As Reuters noted, Fiat Chrysler did the same with Ferrari back in 2016, and the value of that ultra-luxury Italian carmaker has tripled in the last four years.
For what it’s worth, all of this information is coming from anonymous sources, and Volkswagen declined to confirm or deny it for the time being. But one source told Reuters that “Volkswagen would retain a controlling stake in the supercar brand if it were to list,” so while savvy investors may soon be able to buy in (read: cash in), there won’t be a new majority owner anytime soon.
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