Business
Lamborghini CEO says tariffs are causing even the wealthiest buyers to pause
Uncertainty around tariffs has caused even the wealthiest buyers of Lamborghini supercars to hold off on their purchases, CEO Stephan Winkelmann told CNBC.
While the White House recently announced an agreement with Europe on a 15% tariff rate, that rate hasn’t yet taken effect for cars. Lamborghini and other European automakers are still paying a tariff rate of 27.5% on exports to the U.S. With the price of a Lamborghini starting at $400,000, many buyers are choosing to wait for more stable tariff rates before buying, Winkelmann said.
“Some are waiting because they want to be sure that this is the final number that is going to be in place,” Winkelmann said. “Others are fine with it, or we will have negotiations.”
Wherever the final tariff rate settles, however, Winkelmann said the levies will have some impact on the company’s business. He said Lamborghinis can’t be produced in the U.S., since the “made in Italy” promise is core to the brand. And he said that even the wealthy are sensitive to price increases.
“They are millionaires or billionaires for a reason, so they know what they’re doing and why they’re doing things,” he said. “For us, free trade is the right approach. We all know that is what we want. But then there is the reality, and we have to deal with complexity, since we are in business. … We are ready to face whatever comes.”
For now, the company is fairly insulated from any immediate drop-off in demand, since it has a large back order. Cars being delivered today were ordered a year or two ago. Lamborghini announced this summer to dealers that prices would increase by 7% for the Temerario and Urus models and 10% for the Revuelto.
The company, owned by Volkswagen‘s Audi Group, is also riding high from a wave of new models. It reported record revenue in 2024 of more than 3 billion euros ($3.5 billion) and deliveries of 10,867 cars. It’s launched three new models since 2023, all plug-in hybrids: the 8-cylinder Temerario, which replaces the Huracan; the 12-cylinder Revuelto, which replaces the Aventador; and the Urus SE, a hybrid SUV.
For an upcoming fourth model, Lamborghini had announced an all-electric grand touring car to debut sometime in 2028. But Winkelmann said with EV demand slowing, the company is considering releasing it as a hybrid instead and will decide by the end of the year.
“There is a flattening in the acceptance of electric cars, not only at the high end and exclusive supercars, but also in the general market,” he said. “So the trend is going to be delayed in general, and we have to decide. For a car like Lamborghini, it’s not important to be the first one to show a new technology, but to be there when it’s accepted and to have the best technology at that time.”
Last week at Monterey Car Week, Lamborghini unveiled a new limited-production supercar called the Fenomeno. It’s the fastest and most powerful Lambo yet, boasting 1,080 horsepower and 0 to 60 in 2.4 seconds thanks to a 6.5-liter, V-12 engine paired with three electric motors.
Lamborghini will make only 29 Fenomenos, which are part of what Winkelmann calls the “few-offs” strategy of super-rare, hyper-performance versions of its current lineup for top clients.
Also helping the company: a surge in wealth around the world that’s becoming younger and more diverse. Lamborghini owners have an average of five cars in their garage, and owners of the higher-priced Lambos have an average of 10 cars. The average age of the Lamborghini buyer now is under 45, and in Asia it’s under 30, he said.
“There are a lot of countries where we have very young customers,” he said. “We have the second generation of wealth. But we also have a very young customer base of entrepreneurs who made their money themselves.”
Relative to the growth in global wealth, however, Lamborghini’s production has remained small. And while the U.S. is still its largest market, Lamborghini carefully manages supply in every country to make sure the brand remains exclusive and special, Winkelmann said.
“We will always look to make sure we do not crowd one market, and to have always a global view where we are selling the cars,” he said.
Women, he said, will also be a key driver. The Urus has welcomed more women buyers to the brand, and Lamborghini is holding more women-focused events, like the “She Drives a Lambo” driving gatherings.
“We have always been a very male-driven brand, very attractive to males with the design and performance,” Winkelmann said. “But on the other side, we are seeing that with the Urus, we have a lot more women stepping into the brand and having confidence with the brand.”
Pritti MistryBusiness reporter
The government has announced plans to train and recruit more workers for the UK’s clean energy sector, promising to create 400,000 extra jobs by 2030.
Plumbers, electricians and welders are among 31 priority occupations that are “particularly in demand”, with employment in renewable, wind, solar and nuclear expected to double to 860,000 in five years, ministers have said.
Speaking on the BBC’s Sunday with Laura Kuenssberg programme, Energy Secretary Ed Miliband said thousands of jobs were needed to develop Britain’s clean energy sector to “get bills down for good”.
Welcoming the proposals, Unite the union said: “Well-paid, secure work must be at the heart of any green transition.”
As part of the government’s strategy, five “technical excellence colleges” will be set up to train workers with clean energy skills, with £2.5m in funding going towards pilot schemes in Cheshire, Lincolnshire, and Pembrokeshire, according to the Department for Energy Security and Net Zero (DESNZ).
A new programme is to be launched to match veterans with careers in solar panel installation, wind turbine factories and nuclear power stations, while oil and gas workers could benefit from up to £20m from the UK and Scottish governments for bespoke careers training in clean energy roles.
PA MediaThere would be also be tailored schemes for ex-offenders, school leavers and the unemployed.
He said 10,000 extra jobs would be needed to support the construction of the Sizewell C nuclear power station in Suffolk and described how the Siemen’s wind turbine factory in Hull was “booming”.
Miliband also told the BBC he stood by his pledge to reduce energy bills by £300 by 2030, after bills went up by 2% for millions across the UK under Ofgem’s latest price cap, which sets the maximum price that can be charged for each unit of gas and electricity for millions of househoulds in England, Scotland and Wales.
The increase for October to the end of December means a household using a typical amount of energy will pay £1,755 a year, up £35 a year.
In a statement, Miliband said the plan would bring “a new generation of good industrial jobs” to communities across the UK.
“Our plans will help create an economy in which there is no need to leave your hometown just to find a decent job.
“Thanks to this government’s commitment to clean energy, a generation of young people in our industrial heartlands can have well-paid, secure jobs, from plumbers to electricians and welders.”
According to DESNZ, jobs in the clean energy sector command average salaries of more than £50,000, compared to the UK average of £37,000.
Work and Pensions Secretary Pat McFadden said: “We’re giving workers the skills needed to switch to clean energy, which is good for them, good for industry, and will drive growth across the nation.
“Our new jobs plan will unlock real opportunities and ensure everyone has access to the training and support to secure the well-paid jobs that will power our country’s future.”
Christina McAnea, general secretary of Unison, said the government’s strategy could “help create a UK workforce with highly skilled, fairly paid and secure jobs”.
“Additional funding for apprenticeships and opportunities for young people are crucial too if the UK is to have a bright and clean energy future,” she added.
New Delhi: India’s retail inflation is expected to fall further in October, supported by a high base effect, easing food prices, and the full impact of recent GST reforms, a new report has said. The data compiled by Union Bank of India suggests that inflationary pressures will only rise gradually in the coming months.
The bank said its projection for October’s Consumer Price Index (CPI) inflation is currently tracking below 0.50 per cent. It also expects food inflation to drop sharply and remain in the negative zone during the winter months, as the impact of recent floods has been limited.
Inflation has already eased to an eight-year low, helped by lower food prices and the rationalisation of GST rates. The report lowered its inflation forecast for FY26 to 2.6 per cent from the earlier estimate of 3.1 per cent.
It added that inflation is likely to stay below the RBI’s target range for most of the year and may rise slightly in the fourth quarter due to base effects. In September, CPI — which measures the average change in retail prices of goods and services –showed a notable decline compared to the previous month, highlighting a broad moderation in price growth.
The Consumer Food Price Index (CFPI) stood at -2.28 per cent, indicating that food prices have been falling since June 2025. Data also showed that inflation in rural areas was 1.07 per cent, while urban inflation was slightly higher at 2.04 per cent.
Food inflation remained negative in both segments, at -2.17 per cent in rural areas and -2.47 per cent in urban regions, reflecting the impact of falling prices of vegetables and edible oils. The government attributed this decline to “favourable base effects” and lower prices of key food items such as vegetables, oils, fruits, cereals, pulses, eggs, and fuel.
Economists believe that if the current trend continues, India could maintain a low-inflation environment through the festive and winter seasons, supporting consumer demand and overall economic stability.
Inflation is expected to increase to its highest level for 21 months as more pressure piles on the Chancellor and the Bank of England.
Economists have predicted that Consumer Prices Index (CPI) inflation will have hit 4% in September, when the Office for National Statistics (ONS) reveals its latest data on Wednesday.
It would mark the highest level since January 2024.
Inflation struck 3.8% in July and August amid pressure from rising food prices, as firms highlighted increased tax and labour costs.
Economists at Pantheon Macroeconomics predicted that higher motor fuel and air fare prices would help drive inflation to 4% in September.
It also pointed towards “strong clothes prices” for the month, but indicated this could be offset by “slightly softer” services price inflation.
Economists have also suggested there could be a contribution from increased private school fees.
Some schools were expected to increase fees from the start of the new school year as they staggered higher costs for parents after the Government introduced a 20% VAT rate for private school fees at the start of the year.
September’s predicted jump in inflation could represent a peak in the rising cost of living for UK households.
The Bank of England previously forecast that inflation would peak at around 4% in September before steadily falling.
Pantheon Macroeconomics’ Rob Wood has said he expects inflation to “slow only slightly” in the following months, dipping to 3.8% by the end of the year.
Other economists have been more optimistic, with Investec suggesting it expects the rate to have peaked at 3.9% in September before falling.
Any increase would still highlight a challenging economic backdrop for the Bank of England as it seeks to bring inflation down to its 2% target rate.
On Friday, the Bank’s top economist Huw Pill urged other rate-setters to be “more cautious” about future cuts due to concerns that inflation could stay stubbornly high.
Another rise in inflation could also be a major concern for Chancellor Rachel Reeves, a month ahead of her autumn Budget.
The September inflation rate is typically used to decide the level of increase for many benefits, such as universal credit, tax credits and disability benefits.
This rate is also a key part of the Pension Triple Lock, which is used to decide how much pensions will increase by in the following April.
However, the increase is based on either this inflation rate, average earnings growth between May and July, or 2.5%.
Given earnings growth was confirmed as 4.8%, the inflation rate will only be used if there is a shock acceleration beyond this level.
A rise in inflation in September could result in higher-than-expected spending when the Chancellor is already looking to fill a black hole in the state finances.
However, higher inflation would also contribute to a higher tax take, with the September rate also typically used to calculate some annual tax increases such as for business rates.
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