Lola Cars International is to go into administration, parent company Lola Group Holdings has confirmed today.
The group’s fabrication arm, Lola Composites, will also be affected by the decision to appoint an administrator to handle its affairs. Both companies are based at the group’s headquarters in Huntingdon, Cambridgeshire.
Lola Cars International was created by automotive engineer Eric Broadley in 1958 and enjoyed prolific success across many motor sport disciplines, particularly sports cars and Indycar racing. Former racer and entrepreneur Martin Birrane acquired the company in 1997.
In recent years, the firm diversified into other industry areas, creating Lola Composites Limited to work in the defence, aerospace, communications, renewable energy, automotive and motorsports markets. The company worked with Caterham on elements of the latter’s hardcore SP/300R track day car.
The move to appoint an administrator has been blamed on "the economic downturn and the decision of HM Revenue and Customs not to pay ongoing research and development tax credits". The combined effect of those factors has caused a serious cash flow problem for the two elements of Lola’s business.
A statement from Lola said appointing an administrator would allow “the Lola board to continue its discussions with possible investors and prospective purchasers with a view to securing the best outcome for the staff, creditors and customers of both businesses”.
The company said it would make no further comment on the situation until next Monday, 21 May.
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Dallara rules
This is really sad. I remember seeing the monstrous and hugely exciting T70s twitching all over the track in my boyhood.
I think the proliferation of "one make"series in all forms of motor racing is fundamentally bad. Gone are the days when FF, F3, F2 Indycars, etc. had a big variety of chassis suppliers vying for dominance. We have seen the end of Crosslé and Chevron, as well as (I think) Royale and now Lola. When a series is being run now, there will be only one constructor to supply all cars and it is down to politicking and connections as to who gets the contract. Dallara seem to be the best at doing this - I am not sure how many series they are the sole chassis supplier for, but it is a lot.
Perhaps Lola just were not sufficiently well-connected to the decision makers to bring enough influence to bear to win contracts.
It's probably not all over.
It's probably not all over. It's only Lola Cars and Lola Composites who are going in to administration and I would imagine Lola Group Holdings already have at least one more company running, more than likely combining the key staff and clients from the other companies, allowing them to continue operation.
Most manufacturers have their
Most manufacturers now have their own established motorsport (or affiliated) departments / companies, meaning companies like Lola have a harder time finding manufacturer customers. Gone are the days to charge a million quid for a composite tub / spoiler / panel.