Lotus’s new path to recovery as a car manufacturer is to build an own-brand range of non-sports models including a saloon and an SUV, according to a Malaysian website which in the past has proved accurate at reporting secret proceedings in the boardrooms of Proton, the sports car maker’s parent.
According to our source, the saloon and SUV scheme is the brainchild of new Lotus CEO and European industry heavyweight, Jean-Marc Gales, appointed at the beginning of May to “drive Lotus’s transformation plan".
Gales’ specific mission is clearly to restore the viability of car manufacturing at Hethel — after a plan two years earlier to expand sports car manufacture by making six different models, espoused by his ex-Ferrari predecessor, Dany Bahar, failed spectacularly. Since then, Proton (with Lotus) has itself been sold to a new owner, Malaysian-based DRB-Hicom.
What are we to make of the Gales scheme, if the reports are true? First impression: it sounds a lot more believable than the previous plan for three key reasons.
One: Jean-Marc Gales is a genuine European industry heavyweight who led the PSA Group for three years between 2009 and 2012, and introduced the super-successful DS marque during his tenure. He knows how modern car manufacturing works better than any previous Lotus boss.
Two: even impressively profitable Porsche justifies (and finances) the building of its iconic sports cars by making more than twice as many SUVs and saloons. If Lotus could make a non-sporty range work, it could conceivably go right on making the enthusiast-oriented sports cars it has always made, while investing more to make them better.
Three: Lotus is expert in modern flexible platform technology, having produced impressive show concepts of its own in the past, and worked on secret projects for clients. It would also have an opportunity to improve economies of scale by sharing its under-skin technologies with Proton, which itself needs better cars, without compromising designs for either brand.
There are gigantic hurdles, of course. Failed Lotus revival plans are numerous so the company may face a tough task convincing suppliers and supporters that this one will work.
Staffing is another one; much of the impressive talent pool assembled by Bahar has melted away, absorbed by Bentley, JLR and others. Will such people trust Hethel with their futures again?
And what about manufacturing? Lotus hasn’t actually made a fully fledged non-sports car before — with proper door seals and ventilation, assembled to standards that can match the premium models with which it would want to compete.
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SUVs sell
Excellent brain swarm!
desperate news
Porsche get away with deeply cynical rebadged VW SUVs because their customers are mostly shallow, badge-obsessed snobs. The same people have zero interest or affection for the Lotus badge. You're talking about people who wouldn't be seen dead in a GTR because it has a Nissan badge on the nose. They buy a Porsche SUV for the same reason sales reps buy BMW 318i, they think it's dead posh and they like the key fob. Anything else is merely a bonus.
To try and translate that to a business strategy for Lotus is one of the most dumbest ideas I've ever heard. Just because it works for Porsche means absolutely nothing for Lotus. Fast rear engined 2+2s work for Porsche but no other company. Rear engined Ferrari anyone? Preposterous. Lotus made a 911 rival after market research revealed that more Elise owners migrate to 911s than anything else. Makes sense to offer them a Lotus alternative right? Wrong. They never aspired to a £70k Lotus 2+2, they wanted a Porsche 911 all along. The Evora is a dynamic masterpiece that no-one cares about or even bothers to test drive.
To hell with market research and brain-dead corporate committees. Lotus needs to be engineering led. They need to free their immensely talented engineers and designers from trying to second guessing what a fickle market wants and get back to making what they want. The greatest sports cars were all acts of passion not cold calculation. Lotus need to pour their hearts and souls into making brilliant, exciting, ground breaking innovative sports cars. They simply can't hit big production numbers without a major new backer. Lamborghini never managed to upscale until Audi got behind. Lotus will be no different. I can only hope Toyota recognise what a great opportunity a partnership with Lotus could be. Lotus GT86 anyone? Now we're talking. A gorgeous new Esprit with the LF-A V10 and active suspension? Suddenly you're not competing with Porsche, you're overtaking them.
Let Porsche sell out and erode their brand. One day the image conscious will move on and there will be a big triumphant return to 'core values' for Porsche. Making dreadful cars is just not going to work for Lotus. Porsches brightest minds are now pre-occupied with trying to make 2 ton SUVs handle. What a shocking waste! Heaven forbid that happens to Lotus. It's not just the SUV market that has expanded exponentially in recent years. So has the super car market. And that is a space Lotus can and should still be working wonders.
As a longtime and regular
further proof of badge snobbery
'won't it depreciate like a day old turd?' No, Lotus residuals are far better than most Porsches currently.
'won't it break down?' no, Toyota engines never break down.
'no luggage space' plenty once you've had a cull of your Henri Lloyd polos!
Thanks for providing evidence to support my hypothesis all the same. The very definition of being a badge snob is someone who's willing to pay over 30% more for a VW Toureg with a Porsche badge on the nose. Porsche have mastered the art of attracting such people, clearly a great business strategy for them but I don't believe it will work for Lotus. Because, as you've shown, such people have no respect or affection for neither the Lotus or Toyota badges.
Did Da Vinci consider his 'target market'?