RE: Lotus Terminates European Dealer Network
Thursday 8th July 2010
Lotus Terminates European Dealer Network
CEO serves two-year notice period on European dealers as part of radical shake-up
Lotus boss Dany Bahar has written to the sports car maker's entire dealer network to tell them that their current contracts will terminate in July 2012.
The massive shake-up of the European Lotus dealer network is part of Lotus's plans to overhaul the entire company within the next five years.
According to Autocar, Lotus's current contract with its dealers requires a two-year notice period for the termination of contracts.
Existing dealers and franchise holders will be able to apply for a new contract, but Lotus won't yet reveal exactly what it plans to do with its European sales network.
Lotus will also reveal its new product plans - though not necessarily its sales network strategy - at the Paris motor show in September.
Discussion
Their aim is to go rapidly upmarket. This will mean getting rid of owner / driver type Dealerships (normally run by enthusiasts such as Bell & Colvill) and replace them with either Lotus owned 'Centres of Excellence' or large PLC's managing huge sales zones. Whatever happens it will be more professional for a larger prestige marque but will naturally cost us, the consumers (if we choose to stay with Lotus) more in the long run.
And on a much more serious note - just how hot is that pic of Danny??????
And on a much more serious note - just how hot is that pic of Danny??????
Interesting stats... Lotus have only 8 dealerships in Germany, and last year sold fewer cars in that country than Morgan.
It was fairly obvious that the dealer network was going to have to change if they were to make any inroads to selling a larger product line-up. This seems like a pretty extreme way of achieving that, but it wouldn't surprise me if the 'good' dealerships are welcomed back into the fold, whilst some of the under performing ones are let go.
It was fairly obvious that the dealer network was going to have to change if they were to make any inroads to selling a larger product line-up. This seems like a pretty extreme way of achieving that, but it wouldn't surprise me if the 'good' dealerships are welcomed back into the fold, whilst some of the under performing ones are let go.
cqueen said:
bertie said:
My main problem is if I was going to spend the thick end of 100 large on a car, would I be thinking Lotus.........err, no.
Maybe not in it's current format...Edited by cqueen on Thursday 8th July 17:17
But i do agree though, the signs aren't good
Greg
cqueen said:
bertie said:
My main problem is if I was going to spend the thick end of 100 large on a car, would I be thinking Lotus.........err, no.
Maybe not in it's current format...Edited by cqueen on Thursday 8th July 17:17
Could you really see yourself spending £100k on a Lotus and not a Porsche / Ferrari / Lamborghini / Aston / Bentley?
In times when cash is tight overheads are the first thing a company looks at. Lotus probably believe that the people buying Lotuses have already made thier mind up this is the marque for them even before they hit a dealer and that they will retain 95% of the sales they get direct cutting out the middle man
Greg_D said:
cqueen said:
bertie said:
My main problem is if I was going to spend the thick end of 100 large on a car, would I be thinking Lotus.........err, no.
Maybe not in it's current format...Edited by cqueen on Thursday 8th July 17:17
But i do agree though, the signs aren't good
Greg
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