MILAN, April 23 (Reuters) - Sales and deliveries by Italian luxury sports carmaker Lamborghini in the Middle East are at a standstill as conflict in the region forces dealership closures and blocks
Lamborghini Sales and Deliveries in Middle East at Standstill Due to Conflict
Impact of Regional Conflict on Lamborghini Operations
Dealership Closures and Shipment Blockages
MILAN, April 23 (Reuters) - Sales and deliveries by Italian luxury sports carmaker Lamborghini in the Middle East are at a standstill as conflict in the region forces dealership closures and blocks shipments, its CEO said on Thursday.
"Activities are stopped. We cannot send the cars. Dealerships are either closed or just nobody goes there," CEO Stephan Winkelmann said, adding the carmaker risks losing most of the Gulf selling season.
Seasonal Sales Patterns in the Middle East
The Middle East follows a highly seasonal sales pattern, with demand concentrated before and after the summer, when extreme heat keeps buyers away from showrooms.
Financial and Logistical Challenges
The Volkswagen-owned luxury brand faces the risk that lost sales cannot be recovered later in the year, Winkelmann told reporters after a company event during Milan Fashion Week.
Shipping Disruptions Across Gulf Countries
Lamborghini has been unable to ship cars to most Gulf countries, including the United Arab Emirates and Oman, with Saudi Arabia slightly less affected, the CEO said.
Exploring Alternative Shipping Routes
While the carmaker has explored alternative ports, including Jeddah, Winkelmann said rerouting shipments made little sense while the market remained effectively closed.
Significance of the Middle East Market
The Middle East region accounts for about 450 cars sold a year for Lamborghini, roughly 5% of its annual volume, but historically produces high profit margins, in line with industry peers.
Industry-Wide Effects and Future Strategies
Other luxury carmakers have paused deliveries and temporarily shut dealerships across the Gulf as the conflict disrupted logistics and consumer demand.
Order Delays and Potential Reallocation
Winkelmann said orders placed months ago are not being delivered on schedule in the region, though cancellations have not been a major issue.
"If the conflict drags on, it will certainly be a problem for us."
Reallocating Volumes to Other Markets
Although not possible in the short term, Lamborghini may reallocate volumes to other markets if the conflict persists, a strategy it has used since the pandemic amid other global shocks.
(Reporting by Giulio PiovaccariEditing by Rod Nickel)
