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According to overseas media reports, Volkswagen is pushing ahead with comprehensive reforms, hoping to double its market capitalization from 81 billion euros today to 200 billion euros in order to maintain its position in the industry in the future.

Among them, it is considering a variety of options for its Lamborghini supercar brand, sale or spin-off listing. As the possibility is currently being assessed, it is in a state of confidentiality.

Although some analysts expect Lamborghini's strategy to expand from supercars to more spacious utility models to help its market capitalization rise to about $11 billion (78 billion yuan), sales of Lamborghini Urus models have soared since it went on sale in mid-2018. Meanwhile, a redesigned Aventador and a new hybrid supercar will go on sale next year, which could help boost Lamborghini's profit margins to more than 30 per cent.

But Herbert Diess, VW's chief executive, plans to focus future expansion on the group's major global brands such as Volkswagen, Porsche and Audi to promote a more efficient allocation of resources.

In March, Deiss said Volkswagen was reviewing its brand portfolio, including Ducati and Bentley, as well as whether to divest some of its non-core businesses.

The prospects for smaller, less geographically diversified brands such as Lamborghini and Skoda may be limited as Volkswagen tries to streamline its brand lineup.

Last month, Deiss also said the company was working to release potential value for the development and mass production of electric vehicles. Mr Deiss has often stressed the need to maximize the value of the company as soon as possible at a time when VW is facing a costly technological transformation. It plans to increase Volkswagen's market capitalization from the current 81 billion euros to 200 billion euros ($220 billion). So his adjustments are designed to help Volkswagen cope with the current challenges facing the auto industry and gain the upper hand in competition with existing rivals as well as new competitors from the technology industry.

In the face of the impact of new technologies such as electrification and automation, Volkswagen can further "downsize" its business to cut costs in order to ensure that there is adequate funding for research and development of new technologies and sufficient funds to cope with possible future crises. Volkswagen spun off non-core businesses, cut costs, and will achieve annual expenditure savings of 5.9 billion euros by 2023, thereby raising Volkswagen's operating profit margin to 6 per cent.

Volkswagen has begun preparing to merge Lamborghini into a separate legal entity, a move that could end by the end of next year, according to people familiar with the matter.

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