World

Lamborghini confirms entry into luxury SUV market, receives incentives to build cars in Italy

  • Automobili Lamborghini President and Chief Executive Officer Stephan Winkelmann, right, shakes hands with Italian Premier Matteo Renzi at Rome's Palazzo Chigi, Wednesday, May 27, 2015. Lamborghini announced Wednesday it will produce a new SUV in Italy after receiving government incentives. (AP Photo/Alessandra Tarantino)

    Automobili Lamborghini President and Chief Executive Officer Stephan Winkelmann, right, shakes hands with Italian Premier Matteo Renzi at Rome's Palazzo Chigi, Wednesday, May 27, 2015. Lamborghini announced Wednesday it will produce a new SUV in Italy after receiving government incentives. (AP Photo/Alessandra Tarantino)  (The Associated Press)

  • The CEO of Audi, Rupert Stadler, left, Automobili Lamborghini President and Chief Executive Officer Stephan Winkelmann, center, and Italian Premier Matteo Renzi arrive at Rome's Palazzo Chigi, Wednesday, May 27, 2015. Lamborghini announced Wednesday it will produce a new SUV in Italy after receiving government incentives. (AP Photo/Alessandra Tarantino)

    The CEO of Audi, Rupert Stadler, left, Automobili Lamborghini President and Chief Executive Officer Stephan Winkelmann, center, and Italian Premier Matteo Renzi arrive at Rome's Palazzo Chigi, Wednesday, May 27, 2015. Lamborghini announced Wednesday it will produce a new SUV in Italy after receiving government incentives. (AP Photo/Alessandra Tarantino)  (The Associated Press)

  • The CEO of Audi, Rupert Stadler, right, and Automobili Lamborghini President and Chief Executive Officer Stephan Winkelmann pose for photographers at Rome's Palazzo Chigi Government office, Wednesday, May 27, 2015. Lamborghini announced Wednesday it will produce a new SUV in Italy after receiving government incentives.(AP Photo/Alessandra Tarantino)

    The CEO of Audi, Rupert Stadler, right, and Automobili Lamborghini President and Chief Executive Officer Stephan Winkelmann pose for photographers at Rome's Palazzo Chigi Government office, Wednesday, May 27, 2015. Lamborghini announced Wednesday it will produce a new SUV in Italy after receiving government incentives.(AP Photo/Alessandra Tarantino)  (The Associated Press)

Super sports carmaker Lamborghini has confirmed it will enter the luxury SUV market and has signed a deal to produce the vehicle in Italy after receiving more than 80 million euros ($87 million) in government incentives.

Premier Matteo Renzi signed the deal, which is expected to create 500 jobs, at a ceremony in Rome with Lamborghini executives.

Lamborghini CEO Stephan Winkelmann said the Italian package "was the most competitive and won" against a rival bid from Slovakia.

The Urus SUV, unveiled as a concept in 2012, is expected to enter the market in 2018 with a production of 3,000 vehicles a year, more than doubling production at Lamborghini's factory near Bologna.

The move broadens Lamborghini's portfolio beyond super sports cars, while creating jobs in Italy's long-suffering auto sector.