Monday 31st October 2011

Lotus Finally Gets Government Cash

£10m from Regional Growth Fund helps to safeguard Hethel's future

---

Lotus has finally managed to secure a cash injection from the government's Regional Growth Fund (RGF), having previously failed to convince the government that it was worthy of support.

Originally Lotus was looking for £27.5 million, but Proton, the firm's Malaysian parent company, has since reduced that figure to £10 million. That's also expected to be backed up by an estimated £200m of its own money over the next decade that will help Lotus realise its ambitious product plans.

Crucially, the RGF money will also help to ensure that the manufacture of Lotus products remain in the UK for the foreseeable future.

"This is great news for all those concerned about Group Lotus moving production overseas, to say that we're pleased with the result would be an understatement," says Group Lotus CEO, Dany Bahar. "We are an authentic British automotive manufacturer with an incredible heritage and an exciting future ahead, this funding will play a role in assisting with the realisation of our business plan to produce a new range of sports cars with best in class performance and emissions."

"We would like to thank everyone for their support during the bid process. The local authorities, MPs and the local enterprise partnership have all played a role in helping us secure this funding - we're very grateful, it's nice to know people feel strongly enough to act on our behalf."

Bentley gets £3 million from RGF

[thewheelman]

You'd have thought £10 million would be eaten up pretty quickly by a company like Lotus.

[cookie1600]

Ooooh good, they can spend a bit more on pointless advertising now.

[RoseyG21]

^^^^^^^^^^^^^^

Either that or numerous concept cars that will never see the light of day!

[EliseKSK]

"Regional Growth Fund" limited edition Elise on its way. Can't be worse than the "Harrods" edition presently residing at Bell & Colvill.

[British Beef]

That £10M should cover their advertising and F1 Budget for about the next 25 minutes!

I wonder what Dany Bahr bonus will be this year?
Has it been a good year for Lotus? Its certainly been an expensive one.

[Moospeed]

Does this mean they can upgrade from their z-list celebrity 'friends' at car launches, boardroom decisions, etc.

[Froomee]

I wish Lotus all the best. Its good to see jobs staying in the UK and hopefully they will produce some interesting models in the next few years.

[forzaminardi]

Hmmm. "Regional Development Funds", huh? Didn't they prop up Delorean back in the day...?

[thewheelman]

forzaminardi said:

Hmmm. "Regional Development Funds", huh? Didn't they prop up Delorean back in the day...?

Yes, i believe cocaine was involved.....

[Affalterbach]

Wasn't Lotus involved with DeLoren?

[Benbay001]

Froomee said:

I wish Lotus all the best. Its good to see jobs staying in the UK and hopefully they will produce some interesting models in the next few years.

As he/she said!
Im pleased to see that we are getting investment from outside the UK, Jag-LR are doing very well, and have been completely transformed. I dont see whats to say it wont happen to Lotus.

[forzaminardi]

Affalterbach said:

Wasn't Lotus involved with DeLoren?

Indeed. Funny how blokes with nice haircuts and fancy suits seem to gravitate to Norfolk.

[Bebee]

forzaminardi said:

Indeed. Funny how blokes with nice haircuts and fancy suits seem to gravitate to Norfolk.

Alan?

[nawarne]

Benbay001 said:

Froomee said:

I wish Lotus all the best. Its good to see jobs staying in the UK and hopefully they will produce some interesting models in the next few years.

As he/she said!
Im pleased to see that we are getting investment from outside the UK, Jag-LR are doing very well, and have been completely transformed. I dont see whats to say it wont happen to Lotus.

Seconded and thirded!

Shame the last government couldn't find it in their hearts to help TVR in 2006/7.
I'm biased, I know, but Blackpool could have done with a continuing manufacturing industry.
Nick

[Junglehop]

I really dont get all this anti Lotus sentiment. Just read through all the previous posts and most are negative. I dont really understand why? Bahar is not the most likeable individual but then again the CEO of BMW or Porsche may also be a prat but theres still not the same feeling.

They have a great heritage and history, they offer great products and are trying to bring to fruition a bunch of exciting new cars.

They have an impressive team behind the scenes with a huge deal of expertise and will build their cars in the UK, this is great news. I wish them all the best

[Junglehop]

Cant wait to see one of these on the road....

[Bahnstormer]

They already spent the £10mill ....on Swizz Beatz salary !!!!!

[Twincam16]

I can't understand why everyone is getting so skeptical about the development of the new cars.

The VVA platform is engineered to accommodate a variety of lengths, widths and suspension setups. The new engine is designed to be modular so it'll be possible to do V8, V6 and V4 versions on the same rig. The new models are all pretty-much variations on each other, with only the aluminium bodies (which will probably be contracted out - CPP maybe?) as the 'extra' bit.

In short, they've been designed to be relatively cheap to build. Once all the various elements are in place, production shouldn't be too difficult.

[cathalm]

Twincam, this is PH, no matter what the story there will be a great many instances of smuggery. Typically "fans" of rival brands or just general internet warriors who enjoy being scathing online. Pretty typical of forums.

Wouldn't read too much into it. Great news for Lotus and for the region. Time to get that new engine out testing in a hack chaps.

[rallycross]

If it helps keep people employed its great news, if they were developing a new affordable british built sports car (like Elise, Caterham, Ginetta, TVR etc) it would be even better news.

But the money is being invested into Danny Bahar's vanity project, 'pipe dream' £100k cars that no one will want to buy and when the Malaysian money runs out and Mr Bahar and his cronies have all left the bank balance empty there wont be much left saving.