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Lamborghini SpA will confirm its plans to produce a new SUV model in its native Italy this Wednesday, according to industry sources in Europe.

Company president Stephan Winkelmann and the CEO of parent company Audi, Rupert Stadler, are reportedly scheduled to co-chair a press conference in Rome this week with Italian prime minister Matteo Renzi.

The Bloomberg report citing sources close to the matter states that the production green light has been given after Audi/Lamborghini reached an agreement with the Italian government on public support.

In exchange for hiring up to 500 additional staff in its home country to assemble the vehicle, the Italian government will reportedly grant it up to 80 million euros ($112 million) in tax credits and other benefits.

It is expected that key components for the Lamborghini SUV will be produced at an existing Volkswagen Group site, such as the Slovakian plant that makes the Audi Q7 and the Porsche Cayenne‘s body. There could also be some commonality with the Bentley Bentayga (Bentley is another VW Group brand).

The new Lamborghini SUV will be the company’s first vehicle of this type since the Hummer-esque LM002 ceased in 1993. Just 328 units of the ‘Rambo Lambo’ were produced.

The company has been doing the sums on producing a new, more practical high-riding model for a few years, since it premiered the radical Urus concept in April 2012 (pictured).

Lamborghini is already on the up — deliveries rose 19 per cent to an all-time high of 2530 cars last year thanks to the new Huracan — but a hot-button SUV has the potential to double this total.

Alongside the Bentayga, the Lamborghini SUV (it’s not clear if the Urus badge will be retained) will occupy the ultra-high end of the crossover market with forthcoming and in-development SUVs from Rolls-Royce, Aston Martin and Mercedes-Maybach, albeit with a sharper performance focus.




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