Lotus’s new owner “is not thinking about a sale” according to sources close to the Norfolk sports car maker.
The managing director of Proton’s new owner, DRB-HICOM, Dato’ Sri Haji Mohd Khamil Bin Jamil, made the comment last week during a visit to Lotus’s Hethel HQ, near Norwich, intended to reassure management and staff.
Dato’ Jamil said he could “never say never” about a sale, but insisted that selling was not DRB-HICOM’s priority. He said his management would “take time” to understand the Hethel business, but would support it financially in the meantime. Formulating a plan for Lotus could take months, he said, because the situation was complex and a careful decision was needed.
Malaysian-based car-maker Proton, formerly owned by interests close to the Malaysian government, acquired Lotus in 1996 and always insisted that Lotus was one of its key assets. But Proton was itself sold to automotive giant DRB-HICOM three months ago. The deal introduced uncertainties at Lotus, especially when a spokesman said DRB was “willing to talk” about selling Hethel. Matters were complicated by 60 days of financial stringency — required under Malaysian corporate law — which starved Lotus of cash at a critical stage of its ambitious expansion programme.
Car production has now resumed following the 60-day financial hiatus, and development continues on the existing models, Elise, Exige and Evora. Lotus expects to present several new derivatives of these at its celebrations at the Goodwood Festival at the end of June. The company is also continuing to develop its new Esprit supercar, due next year. But whether and when work will resume on the other new models proposed in MD Dany Bahar’s original five-year plan remain open questions.
While partly reassured by Dato’ Jamil’s statement, Lotus-watchers believe the company continues in a kind of limbo, damaging to business, which will only be truly resolved when the DRB-HICOM reaches its long-term decision.
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Re: 'We won't sell Lotus' says new owner
How fantastic that anyone would think such a claim might overturn decades of concern about Lotus build quality. Would he be quite so forgiving about a Ford or Toyota, I wonder, or even something far cheaper such as a hairdryer or a child's toy?
Also I see the second 'f' has fallen off 'off'
Londonist, I can see that you
Londonist, I can see that you are so concerned with your web image- 'the cool witty one' etc, but perhaps you might wish to state a fact rather than a purportedly witty opinion?
Jaguar is a prime example of a marque that is successfully redefining its global brand (thanks to TATA, and post Ford ownership I add) through revisions to its design, and maintaining high perceived and real quality, needless to say customer satisfaction as evidenced in numerous surveys.
Lotus needs to be given the time and funds to realise a similar potential organically. The Exige V6 and the Evora GTE are clear steps in the right direction. The owners have seen the potential and one hopes that they wish to work towards realising some if not all of that before considering any option to sell the Company on to a suitable owner which has long term vision for the brand.
The fact that no German company like BMW, Mercedes, and (god forbid) the VW group, have taken an interest is a blessing for I wager that bar BMW, there is clear evidence that any one of the two mentioned above would work towards corrupting the basic appeal the Lotus brand has.
As regards your comments on quality issues, other brands suffer from them too, including Ferrari, Porsche, and BMW. For example, until the 991 came out the materials found in the 997 range were not anything to write home about. Moreover, Porsche 911s, up until the 966 had issues with engines failing altogether.
If I were a director of Company looking to take on someone with a modicum of optimism and fighting spirit, you would be the last person I would consider for your comments are typical of those coming from cynical lightweights I have come across whilst working in London. ; - )
Re: 'We won't sell Lotus' says new owner
I can't remember exactly how many miles I did in my Elan SE but it was over 100K and although bits fell of my Elise it never actually broke down.
Hardly "Lots of trouble usually serious" but why let truth get in the way of a nice bit of sweeping generalisation.
Re: 'We won't sell Lotus' says new owner
The vast amount of money needed to invest in the new model line up (with no guarantee of success as the end of the investment period) means that the car side is pretty much worthless. The consultancy business is probably worth very little, but could be spun out or MBO'd, presumably there aren't any published accounts for either side of the business as they are/were a subsidiary.