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VW clutches Lamborghini
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June 12, 1998: 8:46 a.m. ET
On shopping spree, German carmaker snaps up Italian sports car maker
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NEW YORK (CNNfn) - Popping the clutch on another luxury European carmaker, Germany's Volkswagen AG's Audi subsidiary is set to speed off with another high-performance acquisition: sports car builder Lamborghini SpA.
One week after snagging Vickers PLC's Rolls-Royce Motor Cars Ltd. unit from rival bidder BMW for $700 million, VW said Friday its Audi subsidiary had signed a letter of intent with Lamborghini to acquire the Bologna-based Italian sports car maker.
Details of the deal will be hammered out in the coming week, Audi said. The value of the deal wasn't disclosed Friday, but VW, Europe's biggest carmaker, apparently plans to fold Lamborghini into the Audi Group as subsidiary, along the lines of Audi Hungaria Motor Kft.
Lamborghini Diablo
Audi also said it is talking with Vickers' Cosworth unit, a quality engine maker, following Vickers' agreement June 4 to sell Cosworth to Audi.
Lamborghini's largest shareholder, with a 60 percent stake, is Tommy Suharto, the youngest son of former Indonesian President Suharto. Another 40 percent reportedly is held by Malaysian developer and financial service provider Mycom.
Lamborghini, known for such sleek models as the 350 and 400 GT, Islero, Countach and Jarama, sold about 200 cars in 1997, with the Diablo model dominating sales.
Industry analysts had largely anticipated that VW would acquire another luxury carmaker. In midday European trading, VW shares fell more than 1 percent. 
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Volkswagen
Lamborghini
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