ROME – Lamborghini’s CEO Stephan Winkleman has announced that the production of the brand’s new SUV will take place at their factory in Sant’Agata di Romana near Bologna. This project will provide an investment of 800 million euros and create 500 new jobs.

 Before yesterday’s announcement, there had been a possibility that the production of the new line of SUVs would be totally allocated to an Audi factory in Bratislava. Audi are Lamborghini’s parent company and already produce the successful Q5 and Q7 SUVs in the Slovakian capital. This latest development however, is a victory for Italy’s manufacturing sector and also for Prime Minister Matteo Renzi.

 "It 'a beautiful day for all of us. It' important sign that Italy can give more quality in work, passion, skill and commitment,” Renzi told reporters.

 At the press conference on Tuesday, the CEO of Audi, Rupert Stadler underlined the fact that Italy will provide excellent expertise but also acknowledged that the financial package had been more favourable in Sant’Agata di Romana in comparison to Bratislava. Sources close to the deal suggest that the government has offered the company in the region of 80 million euros of tax incentives, to ensure that production remained in Italy.

 "We want to produce in Italy 3,000 Urus (SUVs) per year with Italian passion and expertise,” said Stadler. "With the Italian institutions, unions and with Invitalia we had a long and fruitful discussion and in the end the Italian package was competitive and won."

 Although an unusual move for a company, which has produced world-famous supercars including the Gallardo, Murcielago and Reventon, the Urus won’t be the first SUV in Lamborghini’s history. That particular award goes to LM002, which was manufactured in the 1980s in an attempt to snare a military contract, and although the effort was ultimately unsuccessful, the company continued to produce a limited number.

 From a pricing point of view, the Urus will be rather more expensive than its predecessor, with the first models set to hit dealerships in 2018 and cost 180,000 euros. Lamborghini is a household name in European markets but it’s believed that this latest initiative is an effort to crack the expanding markets in the Middle East and China.

 “This is a proud moment for everybody in Lamborghini,” said CEO Winkleman at Tuesday’s press conference. “The introduction of a third model line endorses the stable and sustainable growth of the company and signifies for us the beginning of a new era.”