Italy Offers Lamborghini €100 Million in Tax Breaks to Lure SUV

Italy's central government is offering as much as €100 million in tax breaks and other incentives to Volkswagen AG if the company agrees to produce its upcoming Lamborghini Urus SUV/crossover in the country, sources tell Bloomberg News.

Lamborghini says it won't choose a production location for the vehicle until the project gains corporate approval. That decision is expected at the end of June, according to Bloomberg.

The Urus was first unveiled publicly in concept form at the Beijing auto show in 2012. The prototype is a four-passenger, all-wheel-drive vehicle fitted with a 600-hp engine.

Earlier reports said the high-performance Urus will debut in 2017. Last year sources told Automobilwoche the new Lambo will share its platform with the Porsche Cayenne SUV, VW Touareg SUV and next-generation Audi Q7 crossover.