Exclusive Interview with the Boss of Lamborghini Brand and Design - VIDEO FEATURE

Lamborghini and the Auto Market Crash

LONDON - May 7, 2010: In this exclusive interview, MeetTheBoss.tv welcomes Manfred Fitzgerald, Director for Brand & Design at Lamborghini.

MeetTheBoss.tv's Editor-in-Chief Adam Burns talks with Manfred about how the supercar carmaker is handling the global economic depression.

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COMPLETE TRANSCRIPT OF INTERVIEW

Adam: So Manfred, firstly, thank you very much indeed for agreeing to the interview.

Manfred: Well, thanks for having me.

Adam: I'd just like to start I suppose if I may with a little bit of background. I read an article recently where it said that you and Chief Executive Stefan Winkleman really sort of reenergized and to an extent have reinvented the Lamborghini brand under the VW Group stewardship. I'm wondering, what were the challenges when you first took over?

Manfred: Well, this is going back about almost ten years now. In 1999 as I assumed the position of marketing manager, a market scene was non-existent here at Lamborghini. It was a name there, Lamborghini, but it was not filled with any kind of content, so the biggest challenge was giving this company a, let me say a very unique image, something that everybody could understand, something that was not ambiguous. So to create a distinct image of this brand was the first challenge which I encountered.

Adam: You said, "I spent nine years creating a distinct image for Lamborghini, aggressive, uncompromising and Italian." I'm wondering what the sort of long-term vision is for the company and what's your overall strategy been?

Manfred: Actually, it's a little bit more than only those three brand values that you mentioned. Back then, as I said, there was nothing there, so what I did was defining the brand values, first and foremost. These brand values, in total there are seven; reduced to those three is that what we're always focusing about. That is sort of our guideline for anything that we do, communication-wise, for product, all that what we're about is basically transmitted by these seven brand values. So nine years, yes, it was a pretty difficult task back then because you didn't have a clear idea of what Lamborghini stood for. If you went through the dealerships, everybody had sort of a island solution; everybody interpret the brand in a different way. So I went out to create, starting from the brand values, also a regular CICD — corporate identity, corporate design. It's so important for a luxury brand like ours to have such a clear idea and a clear vision of where you want to bring the brand and where you want to go, so that was sort of the first milestones that we achieved, and you have to be very, very consistent in your approach. So I had a clear vision where I wanted to see this brand out in the future, and we went about doing that.

Adam: I'm interested; I can understand "aggressive and uncompromising"; I think you can see that in the cars. But how do you sum up "Italian"? How do you try and make a brand Italian?

Manfred: I think there you just named it. It's the sum of everything. It is reflected also in the other brand values which are sent to us, which are aggressive, and obviously also exclusive, so these are — that describes it a little bit more. So if you look at all the things that we do, I think we are perceived and we are a true Italian brand.

Adam: So Lamborghini is a very sort of masculine brand. You've described yourselves as the bad boys of the super car world. I'm wondering how the relationship works with VW Group. What do the bad boys give back?

Manfred: I think Dr. Pi๋ch had a beautiful idea back then, and in these difficult times I think it really pays off creating a group where you can find anything, the whole spectrum of the automotive world, so from the smallest vehicle up to the 40-tonner. So you find there, and within that range we're positioned as the ultimate luxury super sports car. So what we're giving back is we're just a complimentary element in this whole chain.

Adam: What about in terms of research and development and design? Are there elements from Lamborghini that find their way through into the R8 I suppose would be a logical sort of choice?

Manfred: No, I don't think you have to go that far. Lamborghini is a standalone company; we have a great autonomy, so the whole R&D is here in-house, as well as the design. So we can, if we want to — and that's what we're doing — tap into the research and development I'd say the fundamental basic facilities that they have, we utilize. We'd be stupid if we didn't do that. But the core research and development is carried out here, as well as the design. I have a design team here, we have it here on the premises, which allows us to do it in a totally different way. My team and I, we live Lamborghini here because we're here integrated into this company. So we don't get commissioned work like other stooges do who do not have this intimate touch then with the brand itself, which enables us to bring out all the work you have seen.

Adam: And then you also said recently, "It would be a mistake to reduce the brand to what we have done." I'm wondering what you meant by that, and also perhaps it's a clear indication that brand diversity is needed. Why now?

Manfred: I think it would be a mistake to reduce us only for that, because we have such a potential here, such a vast creativity here. I think the brand is just — what you've seen so far is just the basis of that what we set out to do for out in the future. We — I said that in the context I believe in the motor show of Paris where we showed a concept car, a show car, the Estoque, the four-door. And we were ask why doing this, and I just exploited it in the way that I said this is also a viable way for us, an incredible way. I think anything that we do has to be authentic; it has to be recognized as a Lamborghini product from the first sight, and therefore, I believe yes, we can do more, and we're set out to do more.

Adam: And is any confirmation on the super sedan? Is that a go-ahead yet to go with?

Manfred: No, it's not at this point. We're not discussing that. We just wanted to showcase, and we wanted to show the world what we could actually do, but for the time being, it's not under discussion.

Adam: A Lamborghini, of course, is selling a dream, but there are some hard commercial realities behind that dream. I asked Manfred how he plans to diversity, both in terms of his core business and the brand extension.

Manfred: I think diversification is a necessity. We have a two-monoline strategy right now focusing on the cars, but a luxury brand is allowed to play out in other fields. Obviously this is our core business, but the merchandising has taken enormous steps in the past couple of years since we have focused on this in a totally different way, and this is, I believe as long as you again stay authentic and stay credible in that what you're doing, any path out there is allowed.

Adam: You have to watch that, though. I know that Ferrari apparently bringing in around about $150 million through their sort of brand extension, but how much of those things — the hats, the sunglasses, etc., etc. — are suitable for Lamborghini?

Manfred: It's not only that. They are in a different position than ours. You would assume they are the same, but it's a similar position because they're also a luxury brand, but they have a totally different history and a totally different standing. We're still in the phase of let me call it brand building phase. I think any step we take out there has to be thought more than once about, so also, if you go into the product placements which we do occasionally in big Hollywood films, I discard about 95 percent of that what I get on my desk because they're just not a brand fit. So yes, it is important to take a look at any kind of activity we take on, and we have to see if it is really that what helps us on building upon our brand image.

Adam: So interestingly if we can just touch on Hollywood films, you do choose Mission: Impossible, I believe — Mission: Impossible II, I believe. I think it was the Thandie Newton —

Manfred: It was Mission: Impossible III.

Adam: III, that was right, sorry, and The Dark Knight, famously, of course.

Manfred: Dark Knight.

Adam: Why were those a brand fit?

Manfred: I think they were just a perfect fit. The Batman, before The Dark Knight, we were already in a very, very brief sequence already in the previous film from Christopher Nolan, but The Dark Knight, we had the script, we went through it with the producers and I thought this is something that really fits the brand Lamborghini. Apart from that, it is a spectacular film, and I loved also working together with the production there, but Mission: Impossible was also something on the very, very high — high-end level. It was a good environment, it was good surrounding, and therefore, we said, "Yes, we can do it."

Adam: What are the key things you have to get across — I mean it's a short sequence. Let's talk particularly about The Dark Knight, for example very briefly. It's Bruce Wayne's car; Bruce Wayne is a multimillionaire, obviously hero, avenger, etc., etc. so I can understand that, and aggressive and uncompromising, perhaps even Italian. What are the things that you insist on? For example, the notes of the engine have to be crystal clear, there has to be certain shots or —?

Manfred: Not even that; we don't go that far, because creativity of — I would not ever interfere with the creativity on somebody else's behalf, so the director has a clear idea of what he wants to see. If we can support that with our products, the better it is. What I do not like is to see our products in the context of being driven by villains or anything like that, that would not fit us; that would not be the appropriate move for us. So Mission: Impossible III was a setting, a luxury setting. It is for us important to see that our products are perceived in a normal context. What I'm striving for is to take us out of the context of being just a niche of a niche, so being just an exotic brand. No, I want to get to the point where we're looked upon more normal, and we can see this already in the States. The Lamborghini brand has taken huge steps there in brand image, and we're a part of the life, and that's what we're striving to do.

Adam: So of course exclusivity is key to a brand like Lamborghini. I have two questions around that. One, how do you keep the demand high in a recession, which by its very nature, demand must be dropping off? And two, wealth is geographical. How do you ensure that there isn't a concentration of Lamborghinis?

Manfred: You're already — you're responding to your question, because it is paying attention, not to have a great concentration of your product in one place, one spot. So we have still a lot of white spots on the map of the world, and therefore, we see still potential out there to bring our products to the market without diluting our brand image and without diluting its exclusivity.

Adam: And what about, we talked about the recession there; what's happening there?

Manfred: I think wealth is still out there. People still have luckily enough money to buy also our products. It is, like you mentioned before, a geographical approach, so still if you take China they still are predicting a growth in this year something like eight-point-something percent. This would be a dream here in Europe, but luckily, you know, if we find still markets which have enough at their disposal and which are in a fortunate situation who can buy our products.

Adam: And how does Lamborghini move into a new market? What are the steps?

Manfred: I think there, we need first of all a good understanding of the market, but that does not mean that we will cater to the market in a special way. What does that mean? We won't do products for a market. We have a global product; it has to work everywhere, so we will not do something specifically for one market. So the market understanding has to be there, we have to understand, and we have to obviously penetrate our brand values. So we have to be understood as a luxury brand. If you take China, for instance, a couple of years ago, the Chinese did not know what Lamborghini is. Is it a coffee brand? Is it something to wear? What is it? No, it's a car manufacturer — no, it's a super sports car manufacturer, and it's a luxury brand. So we have to play in that league, and they have to perceive us as something which they would like to possess.

Adam: Lamborghini's Ad Personam solution allows the customer to personalize his or her Lamborghini. So I asked Manfred, "How important is that customer experience for the company?

Manfred: I think it's vital and also thinking about the future of this brand, it's in the focus of it. We were in the past a technical oriented brand, and if I express my vision of the future would be becoming a modern company. Modern company means also focusing or having great focus on the customer. That does not mean that we will be influenced by the customer in the sense of design, so going to car clinic and asking them, "What do you think of that?" how could we? Our obligation is to surprise the people with the design, and basically to let them see how we realize the dreams they haven't dreamt so far. So that is our obligation as a luxury car manufacturer. So customer, yes. Absolutely important for us and also for the future.

Adam: So how involved can a customer be in the creation of his or her car, and what does that sales process look like?

Manfred: To a certain extent, we have an individualization program. So it is, in the past couple of years we could observe a trend where it was not about that what the Joneses have but what the Joneses don't have. So I want to differentiate myself from my neighborhood. If he has a Lamborghini, fine; I want one, too, but it has to look different than his. So therefore, we came up with this individualization program where we give them I think ample opportunity to individualize their vehicle.

Adam: So your team of course famously designed the Revent๒n — stunning Revent๒n — in just four months. How have advances in technology in the software solutions and science systems made that possible?

Manfred: I think what we have to look into also for the future in terms of design that we have here a totally non-normal process in the sense of my designers are able to do everything in 3D from the first sketch on. So — which means that we can cut corners. We're so fast that we get a package delivered and we work with the package from the very, very first moment, which means the software programs are all known, it's industry standard to name now ADS or anything like that would be wrong, but we're just using that what is out there as an industry standard. I think much more interesting is the underlying process. The underlying process, which means we work together hand-in-hand with research and development; it's not like it's in sequences where one gets something, then gets back, hand it over back to the other department, they say yes or no. No, it's an integrated process where we work hand-in-hand together with the research and development.

Adam: You look at Lamborghinis and they're sort of — they are a very striking brand. Is it almost — is it design led? Do you sit there with and sort of work out, "Wow, wouldn't it be great if we had this?" and then turn to research and development — I know you said it's an integrated process — and say, "Well, could you make this work?" Are there certain facets of the car that are the same regardless of the chassis, the solid steel work?

Manfred: It depends, and that's also always so exciting for each and every new project. Sometimes we have this approach where we have — where it's technically led, so they say, "Okay, here's your package, here's your technical package, these are the parameters you have to respect, these are the limits in which you can work," and off we go. We also find other examples like the Estoque which I mentioned previously, the four-door. It was design driven. So then engineers have to then come and say, "Okay, we'll make this work," and it really worked. So what we wanted to create there was having sort of a sculpture. So this was totally design driven rather than technically driven.

Adam: So where do you look for inspiration?

Manfred: Oh, everywhere. I think that's — we're so fortunate living in a country like Italy, where you can get so many inspirations, but not only here. As we're a global acting company, we have our ears and eyes open everywhere we go into this world. I think that's a key prerequisite to do that what we're doing. We're influenced heavily by other industries. I don't think that just going along in the automotive industry would get you anywhere. Our life is moving at a very, very fast pace; our lives are changing in a very, very fast way; the way we commute, the way we communicate, the way we talk to each other is changing heavily. All that inspires us; all that we take up also as inspiration for our future products.

Adam: I think at the moment, of course there is a sense of environmental awareness. Electric cars are all well and good, but they don't make the right noise. So what can we look for in the future from Lamborghini?

Manfred: Always having a new surprise. So I think that what I said previously is absolutely valid. We want to be the benchmark out there in the industry for a design and for performance vehicles; that's what we're all about.

Adam: Absolutely. And the bottom line, I suppose for you, head of brand and design, how do you steward, how do you ensure that the brand is in good hands when you pass it on?

Manfred: I think this is one of the greatest tasks I have. I think I planted a seed within this company that everybody understands what it takes to realize a vision. It's not only that because in 1999 as I took over, everybody had a certain vision of Lamborghini, what it should be, I think, and this is not about me; it's about somebody who has a vision. And you have to be consistent in your approach, you have to be maybe also a bit stubborn, and don't get irritated by that what the people are thinking left and right of you. If you have a clear vision of what you want to achieve, you have to go for it, and this is the message I want to pass on along with me colleagues, and I think this is one thing that Lamborghini has understood: No matter what is out there, obviously we're not on an island, but we have a clear idea of how we want to form the future, and we want to be part of that. So we like to be in the driver's seat rather than in the passenger seat, and we want to create our own future.

Adam: How do you ensure exclusivity? How do you ensure that demand in these kind of periods where, you know demand is dropping off, you've closed the factories for a couple of weeks. How to you make sure a) I suppose that the brand stays clean and safe, and b) that you really do keep that demand going?

Manfred: Not being tempted to do anything out of the normal. That’s coming back to that what I said previously. I think we have a clear strategy for the future, we will stick to that, and we will weather the times that are out there right now. It is just about not being tempted to do something erratic which would not be, also be understood by anyone out there. There are temptations out there obviously, and to have some quick wins, that's not us. We're sticking to that what we have planned, and I think the world can look forward to some great products in the near future.

Adam: Thank you very much, indeed, Manfred; that was fantastic.

Manfred: Thank you. Thank you, Adam.