Lamborghini For Sale - Dailycarblog
Lamborghini in Potential Peril As Vulture Capitalists Circle With A $7.5 Billion Offer
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I don’t care what name is given to any particular investment group or how respected said investment group is per individual team member. Investment companies, holding companies filled with former high-flying banking executives do not make for captains of industry. And they are certainly not suited to manufacturing industries. The objective of any company, large or small, is to make a year-on-year profit. A noble endeavor for any business because it is the only way to survive. However, investment vehicles, so to speak, are by their very nature akin to a hostage situation.

News of a $7.5 billion offer for Lamborghini, made by Quantum Group AG earlier this month is concerning. Why? because investment companies have traditionally used leveraged debt to bankroll and bankrupt companies. We are not saying this is Quantum Group AG’s intention. But, as an example, let’s take a look at Aston Martin. Aston Martin’s recent near-collapse was due in part to leveraged debt and diverting the debt capital raised into the hands of an investment company that controls Aston Martin.

So what if the company goes bankrupt, the investors have made money and the debt belongs to the company. But there is a method behind Quantum Group AG’s proposed purchase of Lamborghini. They want to turn the 58-year-old Italian supercar maker into a kind of high-performance electric car tech brand.

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Quantum Group AG’s eagerness to acquire Lamborghini and transform it into a pure electric supercar brand is motivated by the fact that the electric car industry will be worth an estimated $1.3 trillion by 2027. The electric car industry is still in the primary stages of its development. And in the years to come will be worth considerably more. Many investment firms prefer 5-year development plans before making an exit.

So, and I am contradicting myself here, it is debatable whether Quantum Group AG will employ good old fashioned vulture capitalism on Lamborghini if they acquire it. And if they do, they can invest, bide their time and let the markets raise the valuation and then sell within their five-year plan. But there is a problem already with the proposal. Quantum Group AG want to lean on VW’s technology for around five years.

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This could mean Quantum Group AG will invest as little as possible little into Lamborghini other than stumping up the $7.5 billion. But this isn’t the only reason why we are worried, yes worried. Quantum Group AG, a Swiss Holding Company, is stuffed with former banking industry executives.

For example, some are former Deutsche Bank high fliers. Deutsche Bank, a bank that admitted to money laundering for Russian criminals, fixing libor interest rates, spying on critics. Do you think these people, these investors hold the heritage of Lamborghini close to their hearts?

They can certainly afford to buy Lamborghinis but you have got to be foolish if you believe they cherish it at all.


Lamborghini For Sale - Dailycarblog
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