Lamborghini: Finally a serious rival for Ferrari

Here's a very interesting article about Lamborghini and why they are now a serious rival for Ferrari.

Lamborghini has long held mythic sway over car aficionados. Its exotic flying-saucer design, its horsepower on steroids, and its deafening engines have been a powerful draw for fans such as comedian Jay Leno and actor Jamie Foxx. But for years, Lamborghini suffered from financial woes and quality problems. The Italian super-sports-car maker went through six owners in 16 years and spent in bankruptcy. So for most of Lamborghini's 44-year history, it has been a mere speck in Ferrari's rearview mirror, selling just about 250 cars a year.

Now an infusion of German cash is helping Lamborghini burn rubber. In 1998, automaker Audi (VLKAY) bought the company. After spending some $500 million revamping production and developing models, Lamborghini has the scale to mount a real challenge to Ferrari. In 2006, Lamborghini says it sold more than 2,000 cars, and sales in the U.S. shot up 48% in the first 10 months alone. The company today has about 100 showrooms worldwide, up from only 45 in 1998. Ferrari still has roughly twice as many dealers, but in 2007 Lamborghini plans to add 10 more in such far-flung locales as Mumbai and Kiev.