Lamborghini has abandoned plans to launch a fully electric model, shelving its much-anticipated Lanzador in favour of expanding its plug-in hybrid line-up.

Chief executive Stephan Winkelmann said demand for battery-powered supercars among the brand’s wealthy clientele was “close to zero”, warning that continued investment in EV development risked becoming “an expensive hobby”.

The Lanzador, unveiled as an all-electric concept in 2023, was expected to form Lamborghini’s fourth EV project. Instead, it will now be replaced by a plug-in hybrid electric vehicle (PHEV), meaning the company’s entire range will be hybrid by 2030.

Winkelmann said Lamborghini would continue producing internal combustion engines “for as long as possible”, arguing that customers value the “emotional experience” of the brand’s cars — from design and performance to the distinctive engine sound.

“EVs, in their current form, struggle to deliver this emotional connection,” he said.

Lamborghini, owned by Audi and part of the Volkswagen Group, delivered a record 10,747 vehicles in 2025, marking its second consecutive year above 10,000 units.

Its current range, including the Urus SUV, Temerario sports car and Revuelto supercar, is already fully PHEV. The Urus, accounting for around 60 per cent of total sales, remains the backbone of the business.

While Europe and the Middle East remain strong markets, deliveries in the Americas declined nearly 10 per cent last year.

Winkelmann said the decision to cancel the Lanzador followed more than a year of discussions with dealers and customers. “Investing heavily in full EV development when the market and customer base are not ready would be financially irresponsible,” he said.

Lamborghini’s move reflects broader challenges facing carmakers in the transition to electric vehicles. Lower-than-expected consumer demand and rising development costs have led several manufacturers to scale back EV ambitions.

Stellantis recently announced significant write-downs linked to electric programmes, while Ford Motor Company and General Motors have also disclosed multibillion-dollar charges.

However, not all luxury brands are retreating. Rolls-Royce’s Spectre EV has emerged as one of its most popular models, suggesting electric adoption varies significantly by segment.

In the UK, petrol and diesel car sales are due to end by 2030, while the EU plans a 2035 phase-out of most new combustion engine vehicles. As a low-volume manufacturer, Lamborghini currently benefits from exemptions under emissions rules and intends to seek extensions beyond 2035.

Winkelmann noted that Lamborghini vehicles typically cover relatively low annual mileage, less than 2,000 miles for supercars, limiting their environmental footprint.

“Never say never,” he said of a future EV. “But only when the time is right.”

For now, the Italian marque is betting that hybrid technology offers the best balance between regulatory compliance and preserving the visceral appeal that underpins its brand.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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The Swindon-based firm’s shares fell on the news

Smiths News has been warned it could face a financial claim over the underfunded pension scheme of collapsed firm Tuffnells Parcels Express. The UK Pensions Regulator told the Swindon-headquartered business at the end of last week it was considering issuing a so-called financial support direction against the firm, which would give it the power to require financial backing for an underfunded pension scheme, even where there has been no wrongdoing.

Smiths News, the UK’s largest wholesaler of newspapers and magazines, owned Tuffnells Parcels Express for nearly six years until May 2020, before Tuffnells called in administrators in June 2023, with its pension scheme left with a large deficit.

Smiths News said a number of other parties connected to Tuffnells are also identified in the warning notice as potential targets of the regulator’s powers. The regulator can seek up to £3.5m from the firms to help plug the funding hole in the Tuffnells pension scheme.

Shares in Smiths News fell three per cent in Monday morning trading.

The firm said: “The board is reviewing the warning notice with its advisers and will have an opportunity to make submissions to the Pensions Regulator in response.

“These will be considered by the Pensions Regulator’s case team and then referred to a determinations panel before any decision is made as to whether a financial support direction should be issued against Smiths News, and if so, in what form or for what value.”

It added: “The board maintains the view that Smiths News acted reasonably throughout its time as parent of Tuffnells and that it was an overall net contributor of funding to Tuffnells during its period of ownership.”

The European Commission has called on the United States to honor the terms of a transatlantic trade deal reached last year, after new tariffs were announced following a ruling by the US Supreme Court.

The request signals rising tension between two of the world’s largest trading partners as officials seek clarity on how the new measures will be applied.

The court struck down former President Donald Trump’s earlier global tariffs on Friday. In response, Trump introduced temporary tariffs of 10% across the board, raising them to 15% a day later, Reuters reported.

The European Commission said Washington must provide “full clarity” on its next steps and whether the new levies comply with the existing agreement.

“The current situation is not conducive to delivering ‘fair, balanced, and mutually beneficial’ transatlantic trade and investment,” the Commission said, adding, “A deal is a deal.”

The statement was stronger than the bloc’s initial response, which had simply noted it was reviewing the court’s decision.

Under last year’s trade arrangement, most European Union goods entering the US face a 15% tariff, while certain sectors—such as steel—are governed by separate rules.

Some items, including aircraft and spare parts, were granted zero tariffs. In exchange, the EU reduced duties on many US products and stepped back from plans to impose retaliatory measures.

European Commission Warns New US Tariffs

Officials say it remains unclear whether the newly announced tariffs override those terms. If they do, products currently enjoying zero duties could lose that status.

There is also concern that the new tariffs might be added on top of existing US import duties, something the earlier agreement avoided.

Economic estimates suggest the impact could be significant.

According to the NYPost, trade policy monitor Global Trade Alert projects the EU could be about 0.8 percentage points worse off overall, with Italy facing an additional 1.7 percentage points in tariffs.

The Commission warned that unpredictable tariff policies risk shaking business confidence and disrupting global markets.

It emphasized that European products should continue to receive the competitive treatment promised under the agreement, with no increases beyond the agreed ceiling.

EU Trade Commissioner Maros Sefcovic has already raised the issue with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, underscoring the urgency of the situation.

Originally published on vcpost.com