The head of Lamborghini's research and development has revealed that the Estoque has been shelved for now, due to the difficult economic climate.
"The timing and market conditions are just not right for an additional model line," Maurizio Reggiani told Autocar.
The four-door four-passenger sedan, which initially debuted as a concept at the 2008 Paris auto show, was slated to have a front/mid-engined layout with permanent all-wheel drive. It was speculated the Estoque could be powered by a V-10, a turbocharged or hybrid V-8, or a high-performance diesel. Lamborghini was hoping to have the vehicle in production by 2012.
Autocar says the Lambo sedan project had only been granted "feasibility funding", resulting in a small financial penalty to the Italian automaker for canceling the project.
Company sources say the car maker is rethinking its strategy for future products. Weight saving will take a priority in future models, and the car maker may even drop turbocharging plans to focus on high-revving normally-aspirated engines instead.