After Ferrari Luce backlash, Lamborghini CEO says canceling its own EV was the right choice

After intense backlash following the reveal of Ferrari’s first all-electric automobile, the Luce, the CEO of rival luxurious automobile maker Lamborghini stated canceling his firm’s EV plans was the appropriate choice.

Lamborghini CEO Stephan Winkelmann stated on Wednesday the automaker’s resolution to kill the all-electric Lanzador and a model of its Urus SUV to concentrate on plug-in hybrid electrical autos was “the right strategy to go” for his firm, however stated “each model, each firm has to determine for themselves.”

“Our resolution to go from [traditional internal combustion engine] to plug-in was an important one for us, and it labored out,” Winkelmann completely instructed CNBC throughout a digital interview. “We do not discuss our opponents … however everyone has their own technique.”

Winkelmann declined to remark straight on the Ferrari Luce or the responses it has obtained, however stated “innovation is paramount” to success. Nonetheless, he stated innovation shouldn’t be made for innovation’s sake or pressured upon prospects.

“By observing the market … we noticed that the acceptance curve [of EVs] for our sort of consumers is just not growing, and that subsequently we determined to maneuver away from a full-electric automotive right into a plug-in hybrid,” he stated.

Lamborghini, owned by German automaker Volkswagen, was one in every of many international automakers to have pulled again on EV investments on account of weak demand.

Shares of Ferrari fell about 8% on Tuesday in Milan and dropped 5.3% in New York after the unveiling of the Luce on Monday in Italy.

Analysts stated the inventory response was partially on account of “design hate.”

“In the end many followers are dissatisfied that Ferrari is embracing the EV idea, believing it dilutes the supercar model, which has modelled itself round basic design and uncooked, combustion-engine energy,” Michael Discipline, chief fairness strategist at Morningstar, instructed CNBC earlier this week.

The Luce was designed by former Apple design chief Jony Ive and is a departure from the aesthetic of typical Ferraris, together with a minimalistic inside design with screens and a bubbly exterior.

Apart from investor considerations, the automobile confronted notable criticism from former Ferrari government Luca di Montezemolo in addition to Italian Deputy Prime Minister and Transport Minister Matteo Salvini.

“I hope that they take off the prancing horse [logo] from that automotive,” di Montezemolo stated on the sidelines of a enterprise convention in Rome, in line with Reuters.

Ferrari declined to touch upon di Montezemolo’s remarks.

— CNBC’s Sam Meredith and Robert Frank contributed to this report.