Lamborghini CEO: Esports provides an 'appetizer' for the younger, future customers

Yahoo Finance's Alexis Christoforous and Brian Sozzi speak to Stefano Domenicali, Automobili Lamborghini Chairman and CEO about the current state of production, launch into esports, future of electronic cars for the automaker and innovation.

Video Transcript

ALEXIS CHRISTOFOROUS: All right. Lamborghini's manufacturing facilities in Italy are back online after being shut down for nearly two months because of the pandemic. During the lockdown, Lamborghini used its facilities to produce face masks and face shields for health care workers. Joining us now is the chairman and CEO of Lamborghini, Stefano Domenicali.

Stefano, great to see you. Thanks for being with us. Your cars are beautiful and they don't come cheap. I think the base price is about $200,000. So given the lockdowns, given the economic crisis we're having right now, what is demand like for your super car luxury cars?

STEFANO DOMENICALI: Well, Alexis, first of all, it's great to see you, too. I mean, I think that what we can say today is that the first signal that we received from our customers, from our market, that no orders has been canceled. So I think that is an incredible sign in this moment where we live in a unique and unreal situation. Therefore, what I can say is that, you know, our customers are loyal to the brand. And for us, that was very, very important, because if these people, when we locked down the company, we wanted to use this to stay more close to them.

I said to my people, we need to move from a customer-centric system to a customer and give them information. We're giving them-- you know, they all what we are doing. That's why also, we launched the car on the digital platform in order not to waste this time. Therefore, that is a great opportunity for us to, let's say, restart once again with this same kind of situation, what we had before the lockdown.

And of course, now that the all the dealers are back to operativity, that we're going to have 100% of our dealers fully open next week. We're going to see what will be the momentum of the future. I'm expecting, Alexis, that, you know, at the beginning, we're going to have a lower pace, because that's normal when you have a restart situation, when you are wearing masks, when you have not really the right environment, when you have to share and show what you like. We'll be, you know, slowing down a little bit. But I'm pretty positive. I'm thinking that, you know, as soon as this momentum will fade away, we're going to have back on trace, you know? The numbers of orders, of intake orders, that we used to have in the last months.

BRIAN SOZZI: Stefano, how has this changed how you manufacture? How has the COVID situation changed how you manufacture a Lamborghini?

STEFANO DOMENICALI: Well, Brian, I would say that on our side, we didn't change anything in that respect. What we had to change was the protocol we had to respect that in order to allow the people to work safe in this moment. So we used the time when we were closed to work together with our workers in order to have the social distancing on each post of the assembly line, to keep the distance in the canteen, to make sure that everyone was wearing masks, or are wearing masks and gloves and protection. So the things have changed in terms of respecting the protocol, but without having a really-- you know, a bigger effect on the production.

We were using the first weeks of production at a little bit slower pace because we want for all the workers to feel safe and to make sure they were getting used to the new system of working. But in terms of supply chain, in terms of other things, we didn't change so much. We're going to be full production, you know, in the next week in order to try to recover the delay for the customers that are loyal, that are waiting for the cars to be given to them.

ALEXIS CHRISTOFOROUS: Stefano, I was fascinated to learn you're diversifying and recently entered the world of esports with The Real Race. And I think the prize is actually getting to test drive a real-life Lamborghini, which has got to be pretty cool. Tell us why. Why enter esports? Why do that now?

STEFANO DOMENICALI: Well, because, you know, the digital platform, on which we are very, very strong-- it means that we are close to our younger generation customer-- is something that in this moment, is really very, very, very full of activity. And then when we're talking about sportivity, when we're talking about something that is close to the young generation, we need to be there. But I always said that we are strong, because we use the language of the younger generation customers as, let's say, an appetizer, to think that we are not producing the digital cars, we are producing real and physical cars where you want to drive and touch. Therefore, this is something that wants to give more-- you know, getting ready for the moment where you can really drive the car on the track, in the city, around the world, because that's really the reason why you buy such a car.

BRIAN SOZZI: Stefano, I remember, speaking of city, about almost two years ago, we were driving around New York City, when it was OK to drive, in a new Urus. And we were talking about the future production of a Lamborghini. And you told me a hybrid is coming, and yes, you are open to an electric car. Well, you've come out here with the hybrid. You've released that out into the market. What about the electric car? Is it still five to seven years away?

STEFANO DOMENICALI: I think so, Brian. I think that if we're talking about hybridization, we are already in our full future portfolio, you know, in this direction. There's no doubt about it. In terms of fully electric cars, we need to be different from the others. Therefore, I don't see that coming in the short term. That's for sure.

ALEXIS CHRISTOFOROUS: Stefano, are you joining us from Bologna, from your headquarters there?

STEFANO DOMENICALI: Correct. This is my office.

ALEXIS CHRISTOFOROUS: You know, it was amazing. I know you got up back up and running about two months after the lockdown in early May. And just a few days later, you released an update to one of your Lamborghinis-- I guess a rear-wheel drive? Tell us about that car.

STEFANO DOMENICALI: Well, Alexis, you are pretty well-informed. I'm very happy for that. And yes, it's right. We just launched that, also through the-- thanks to the technology of augmented reality that we did get together with Apple-- you know, the launch of the last model of the Huracan family. Huracan two-wheel drive Spyder is the perfect car for young generation, because it's two-wheel drive. You have a different way of having fun with the car. It's a lot of connectivity tools inside the car, because this is really the things that you need when you drive the car, available for the ones really loving the brand.

And well, it has been already a great success in terms of attention. Now, it's really looking forward to the cars around the world, because we are starting to shoot them now. And really, they're really looking forward, as I said, the ones to see real cars back where it belongs. That is the street, that is the track, that the place to enjoy our life, because we are pretty lucky that we are producing these marvellous jewel.

ALEXIS CHRISTOFOROUS: Yeah. These cars were made to drive, for sure. Before we let you go, just give us a feel for what things are like there on the ground. I mean, I know Bologna, Northern Italy was a hot spot at the peak of this virus. What are things like now?

STEFANO DOMENICALI: Well, Alexis, now we can see the light after the tunnel. That is a great thing, to be honest, because I have to say I'm an Italian, a proud Italian. I have to say that to stay in a lockdown situation as we did, for one month, in the house without having the chance to get out, believe me, it is really difficult. It's something that I-- well, when I was doing that, I said that is not really something that I think that I'm living. It's like a nightmare.

Therefore, the behavior of the people was really extraordinary. Now, I think that step-by-step, we are going in the right direction. We need to stay prudent, of course, but I see life coming back again. And really, I really hope that the borders will open soon in order to go back to our normality, because we are a people that love to stay together. We don't have to forget that.

ALEXIS CHRISTOFOROUS: I think we're united in that. We feel the same way over here in the US. Stefano Domenicali, chairman and CEO of Lamborghini. A pleasure. I expect a test drive when I see you in person next time, OK?

STEFANO DOMENICALI: Alexis, till then.

ALEXIS CHRISTOFOROUS: All right. Thanks so much.