Lamborghini has reportedly reached a deal on tax breaks with the Italian government in order to build its upcoming SUV in the country and is expected to make an official announcement on Wednesday.
According to people familiar with the matter cited byBloomberg, Lamborghini CEO Stephan Winkelmann and Audi CEO Rupert Stadler will attend a press conference in Rome on Wednesday together with Italy’s Prime Minister Matteo Renzi who will announce the agreement.
The Italian government will grant as much as €80 million ($87 million) in tax breaks and other benefits in exchange for Lamborghini’s plan to hire as many as 500 people, the unnamed sources added. The new high-performance SUV is expected to double the sports car manufacturer’s annual output, as Lamborghini forecasts sales of about 3,000 units a year for the crossover.
The SUV previewed by the Urus study (pictured) will be Lamborghini’s first such model since production of the LM002 ended in 1993. In order to cut costs, the chassis and other key components will be produced at VW Group plants, such as the Bratislava factory where the frame for the Porsche Cayenne is made.
Lamborghini has renewed a labor contract with Italian unions on May 22.