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Lotus might be in trouble

By Rigval on 14 Apr 2012

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Oh No. The Lotus group, makers of the Lotus Elise, Exige and Evora is rumoured to be in trouble. It seems that DRB-Hicom, the Malaysian conglomerate that owns Group Lotus' parent company, Proton may want to free itself from the wrangles of trying to turn around the sports car company.

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According to industry followers, notably F1 reporter Joe Saward, the management of DRB-Hicom somehow does not think that owning Lotus makes financial sense and may sell off its stake in Lotus to China Youngman, a company that already has ties with Proton.

This news comes after the Lotus F1 team terminated a sponsorship agreement with Group Lotus but also stated that it had struck a five-year deal with Lotusís owners to continue using the famous name.

This little statement is indeed confusing confirms my suspicions about the continued sponsorship of the F1 team and also the continued support of Lotus cars after the takeover of Proton.

This is happening right smack in the middle of Lotus' five-year turnaround plan. Lotus is in the midst of a spending spree in order to bring it into direct competition with manufacturers like Porsche and Ferrari instead of an affordable, slightly upscale fiberglass car manufacturer that most of us see it as.

DRB-Hicom is now seen as a company that does not think a sports car manufacturer can make money in the long run and wants to jump ship. It can be seen that this is a way for them to free itself from the £200 (S$ 395) million worth of debts that Lotus has accumulated prior and during this current turnaround plan.

So this may be the prelude to Lotus sinking like the Titanic, or folding down like Saab in car talk. It could also mean the take over of Lotus by another Chinese company which is what happened to Volvo (to Geely).

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Written by Rigval
Born in 1972. Married with a kid. Loves B-road drives and have driven cars from the 1950s to date.

  • 1
ER-3682 Apr 14 2012 02:04 PM
BMW should buy it...they need a pure sports car.
Mecontle Apr 15 2012 04:45 PM
they can start making budget car , not everyday is a sunday
Rigval Apr 15 2012 10:52 PM
Somehow I second your suggestion ER-3682
  • 1
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