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marco46

2 posts

28 months

[news] 
Thursday 7th June 2012 quote quote all
Apart from a careful leak to the Mail's 'This is Money' site DRB Hicom have been coy about the reasons for the suspension and subsequent dismissal of Dany Bahar. The leak to 'This is Money' hinted at Mr Bahar's love of ferociously expensive charter helicopter and business jet hire to attend all manner of motorsport events all over the world. Usually on the pretext that a Lotus sponsored/branded car was competing.

DRB Hicom hinted that they found this behaviour totally unacceptable when Group Lotus required a Proton-negotiated loan of £270m in early 2011 in order to survive. Bahar's profligate spending included the payment of £300k upfront for 'exclusive helicopter hire of an Agusta 109 or equivalent for 3 years'. Paid in full by Lotus against stiff opposition from within the company in July 2011. This is just one example of Bahar's attitude to spending money. £30k on motorsport books for his office another minor example. £7k on a single trip to Lausanne in August 2011 - last minute hire of a Bandeirante bizjet via Saxon Air when he missed a scheduled flight. DRB Hicom's auditors may have taken a dislike to a request by Bahar's chief crony Gino Rosato for Marlboro Gold cigarettes to be purchased at Lotus's expense. Add to these handful of examples the embarrassment (a huge issue in Far East corporate culture) the High Court law suit against Lotus and Bahar for £90k of building renovation charges on a rented house and it's no surprise that he's bitten the dust. In fact the only surprise is that it has taken so long for his charade to be exposed.

I have not even mentioned the £1m plus spent on leases and legal bills on the white elephant 'Lotus Originals' Knightsbridge store that was supposed to be open in November last year.

I suspect there will be further developments as Lotus's CFO Rusman Zaihan is a Proton man who is based at Hethel and whose job is ostensibly to approve every pound note spent by Lotus. He's been there for most of Bahar's time and will have known exactly what was being spent.

Edited by marco46 on Thursday 7th June 21:42


Edited by marco46 on Thursday 7th June 21:53


Edited by marco46 on Thursday 7th June 22:41

mlhj83

117 posts

40 months

[news] 
Thursday 7th June 2012 quote quote all
marco46 said:
Apart from a careful leak to the Mail's 'This is Money' site DRB Hicom have been coy about the reasons for the suspension and subsequent dismissal of Dany Bahar. The leak to 'This is Money' hinted at Mr Bahar's love of ferociously expensive charter helicopter and business jet hire to attend all manner of motorsport events all over the world. Usually on the pretext that a Lotus sponsored/branded car was competing.

DRB Hicom hinted that they found this behaviour totally unacceptable when Group Lotus required a Proton-negotiated loan of £270m in early 2011 in order to survive. Bahar's profligate spending included the payment of £300k upfront for 'exclusive helicopter hire of an Agusta 109 or equivalent for 3 years'. Paid in full by Lotus against stiff opposition from within the company in July 2011. This is just one example of Bahar's attitude to spending money. £30k on motorsport books for his office another minor example. £7k on a single trip to Lausanne in August 2012 - last minute hire of a Bandeirante bizjet via Saxon Air when he missed a scheduled flight. DRB Hicom's auditors may have taken a dislike to a request by Bahar's chief crony Gino Rosato for Marlboro Gold cigarettes to be purchased at Lotus's expense. Add to these handful of examples the embarrassment (a huge issue in Far East corporate culture) the High Court law suit against Lotus and Bahar for £90k of building renovation charges on a rented house and it's no surprise that he's bitten the dust. In fact the only surprise is that it has taken so long for his charade to be exposed.

I have not even mentioned the £1m plus spent on leases and legal bills on the white elephant 'Lotus Originals' store that was supposed to be open in November last year.
I can on very good authority confirm that these are what DRB HICOM are using as reasons to sack him. He frequently, if not regularly, used the helicopter to travel from home to Lotus and had Lotus cars placed around europe for his personal use.

Caractacus

2,426 posts

111 months

[news] 
Thursday 7th June 2012 quote quote all
If the above is correct, the news doesn't surprise me at all. I've worked with some folk that have behaved in a similar fashion and it has bitten them in the end, also.


mlhj83

117 posts

40 months

[news] 
Thursday 7th June 2012 quote quote all
Caractacus said:
If the above is correct, the news doesn't surprise me at all. I've worked with some folk that have behaved in a similar fashion and it has bitten them in the end, also.
While I cannot provide evidence for obvious reasons, it is correct. Although it doesn't discount politics and ulterior motives, these are good enough reasons to sack someone.

pycraft

68 posts

70 months

[news] 
Thursday 7th June 2012 quote quote all
Saturn V said:
He was already working for the parent company

http://investing.businessweek.com/research/stocks/...

Funny they missed off Mohd and bin from his name in the press release. Not English enough sounding perhaps going by all the references to English and British in the wording!?

Edited by Saturn V on Thursday 7th June 18:58
That's actually perfectly normal. My team had four Malaysian chaps working in it at one point, and they all used their middle names in everyday conversation. I thoguht it might be because first names have some form of family association, whereas your middle name was the one you used.

"Bin" in an Arabic name means "son of", but is usually obsolete because your father's and grandfather's names are used as middle names anyway.
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DonkeyApple

17,283 posts

55 months

[news] 
Thursday 7th June 2012 quote quote all
MrTappets said:
I can see this working. As far as I can see it was really the spin and weird tie-ups that made people nervous. We shouldn't forget that the Evora S and GTE and the new Exige S are really fantastic cars by most accounts. I think they'll get back on track with strong products.
I always thought the concept was sound. That to tap into the major markets for the next two decades they needed to elevate themselves hard and fast into a new and desirable segment for these types of buyers.

But the execution was odd. Why Swizz Beatz and Brian May? There were far smarter people to associate the brand with to gain prominence.

5 cars at the same time was far too punchy to be believable and sadly, none of them looked a league above the competition in their segments.

I fully appreciate the need to tap into the BRICs and that a very specific type of brand is needed. In some regards I'd look to a halo GT and an SUV for these markets and focus on road legal track machines in Europe and US and carve out a name for being the best in that segment which would be hugely in keeping with their pedigree.

Plus, both sectors would leverage off each other giving them both the two types of image that the brand overall needs, one being a brand for serious drivers and the other being a brand for the wealthy.

Irrotational

631 posts

74 months

[news] 
Thursday 7th June 2012 quote quote all
1 post in 12 months and all to expose Dany bahar!? - top lurking!

How many other "one-use" identities have you registered in the past - I am impressed clap

Irrotational

631 posts

74 months

[news] 
Thursday 7th June 2012 quote quote all
DonkeyApple said:
and focus on road legal track machines in Europe and US and carve out a name for being the best in that segment which would be hugely in keeping with their pedigree.
But they're already beaten in that segment by caterham tongue out

mlhj83

117 posts

40 months

[news] 
Thursday 7th June 2012 quote quote all
Irrotational said:
1 post in 12 months and all to expose Dany bahar!? - top lurking!

How many other "one-use" identities have you registered in the past - I am impressed clap
I am not actively involved in the forums as such but I'm an avid PH user and I have attended Sunday Services with my username. Lets just say Lotus and and its parent companies are close to home.

pycraft

68 posts

70 months

[news] 
Thursday 7th June 2012 quote quote all
Apache James said:
Please stop slagging Dany off he was trying to make LOTUS work. It was made clear it could not survive as is; and he was given a contract to change that. He did his best and he has tried to revive an important brand and got sacked for (what I can see) the new owners not liking his original contract. I know people do not like it but a contract is a contract. Employers and employees should stick to them and not expect them to change just becuase new owners do not like whst the previous owners signed up to.
I kind of agree with that. The problem is, unless you're a teeny manufacturer like, say, Ariel, you can;t survive on specialist pocket racers. There was a very good op-ed bit in one of the mags recently about how Lotus don't make cars for women, and the fact is that the majority of people driving two-seater sports convertibles are woen in their 40s who want something glamorous. I'm not saying that should define the brand but if it keeps it afloat, where's the harm? Let's face it, the only reason the 911 GT3 exits is because the deisel Cayennes and base-model Boxsters pay for it. I think Bahar was rigt to broaden the brand appeal.

As to his glamorous lifestyle, I for one would go for it given half the chance...

dandarez

5,754 posts

169 months

[news] 
Thursday 7th June 2012 quote quote all
Spent £30,000 on motorsport books for his office!

Engineering background of Bahar replacement, new COO (note, not CEO).
In 1989 he worked in England initially as Project Engineer with AE Auto Parts and in 1991 worked at Denso Marston (car rads I think?) where his last held position in 2007 as Product Technical Manager, was responsible for automotive engineering solution.

He joined DRB-HICOM in 2007 and was seconded to Isuzu HICOM Malaysia Sdn. Bhd. (formerly known as Malaysian Truck & Bus Sdn. Bhd.) as the Chief Operating Officer.

...then elevated in 2012 to COO of Lotus Cars.

Not bad from Truck & Bus!

Ian974

1,846 posts

85 months

[news] 
Thursday 7th June 2012 quote quote all
Well everyone wanted them to get rid of him, and they have so be happy!
If the V6 exige is as great as it sounds, they just need to keep going. Release the new Esprit, new supercharged elise is supposed to be excellent, the evora is a lovely looking car; one more other model and they've got their 5 car lineup and no Bahar!

The Crack Fox

9,970 posts

78 months

[news] 
Thursday 7th June 2012 quote quote all
mlhj83 said:
He frequently, if not regularly, used the helicopter to travel from home to Lotus
I had this weird dream last month where Dany hired me, made me live next door to him, and gave me a lift to work in a helicopter. How odd !

Not sticking up for him, or his plans, but Lotus's main problem of weak sales are a far bigger issue than Bahar's over-expenditure IMO.

peter450

1,445 posts

119 months

[news] 
Thursday 7th June 2012 quote quote all
pycraft said:
As to his glamorous lifestyle, I for one would go for it given half the chance...
Of course you would, so would most people, thats why society and companies etc have rules, laws and regulations, to stop people from excessively helping themselves to what they want.

As a CEO, you get to help yourself more than most, but there are limits, or every CEO of medium to large companies would be living a billionaries lifestyle at company expense, and if your heading up a loss making company, then clearly excessive spending is going to play very badly with the owners/shareholders

mlhj83

117 posts

40 months

[news] 
Thursday 7th June 2012 quote quote all
The Crack Fox said:
I had this weird dream last month where Dany hired me, made me live next door to him, and gave me a lift to work in a helicopter. How odd !

Not sticking up for him, or his plans, but Lotus's main problem of weak sales are a far bigger issue than Bahar's over-expenditure IMO.
No doubt, but having someone haemorrhaging company money for personal use doesn't bode well for a company that is already struggling. His expenditure could have easily covered the employment cost of a good few engineers, designers etc.

Edited by mlhj83 on Thursday 7th June 22:23

pycraft

68 posts

70 months

[news] 
Thursday 7th June 2012 quote quote all
What I think Lotus are tarting to get the hang of is platform sharing. The common engines between the Evota and Exige will bring the costs down. With the Exige Convertible due, is there enough of a reason for carrying on with the Elise? It's getting to the stage where its main competition is the mass of seconh-hand versions of itself. The Exige offers a seriously more advanced package, but one which probably doesn't cost much more to make - especially with that common engine - but costs more to buy, making it a more sensible financial package (like the fact that it costs BMW the same amount to make a 3-series as a 5-series).

With the Exige carrying on the Elise DNA, there needs to be a new Elise aimed at a broader market (like the original Elan - would anyone have clambered out of the Elise in the Avengers in the 60s?). We know a drop-top Evora is due. I think a stretched - even 4-door - Evora would give it competition in the CLS/6-series market, the of course the new Esprit at the top.

The only thing that Lotus needs to address above all else is the perception of (lack of) quality. The problem is that quality materials weigh more - brace for howls of complaint round here...

GAGA

51 posts

91 months

[news] 
Thursday 7th June 2012 quote quote all
To: DRB Hicom Bhd.
From: Gaga Consulting Ltd.
Date: 07th June 2012
Subject: Lotus Group Plc

Background:
The acquisition of Proton Holding Bhd. made it
necessary for DRB Hicom Bhd, the acqiring party,
to evaluate and decide about the future of the
acquired party's subsidary Lotus Group Plc (in
the following to as "the company" or "Lotus").
As it interferes with its parent company's
business and drains its resources, a disposal
of the said subsidiary could help to free up
resources and focus on the further developement
of its current parent company.

Proposals
We suggest two ways of diposing the company under review.

One is to realign the turnaround plan and to float
Lotus on the stock market. This would also help
to ease the financing, as the proceeds from the
IPO could be used for debts repayment and financing
future plans. Furthermore, it might also facilitate a
future sale. In order to show commitment and support,
the current parent company should remain as the
major shareholder.

Secondly, we propose merging the company with
another carmaker. As a suitable company to merge
with, we have indentified Aston Martin Lagonda
Ltd. The said company also builds and sells
sportscars, but caters a different market segment.
It also suffers from similiar issues due its size,
for instance financing new product development.
A combination of Lotus and Aston Martin might
help to share development costs through joint
developments and platform sharing. Both companies
would complement each other, as both have valuable
expertise in building low volume sportscars.
Furthermore,the distribution channels of both companies
could be enhanced through a joint sales and service network.


Implementation:
The realignment of the turnaround plan and the
assessment of the business for a possible IPO
should be assisted and conducted by external
help. Consulting experts should be assigned
with the review of the business. Whereas investment
banks should be tasked with assessing the business
and the chances for an flotation.

As regards the possible merger, the current owners
of Aston Martin Lagonda Ltd. should be contacted
and discussions should be started. Secrecy is
necessary in order to avoid unnecessary media coverage and
possible adverse effects for both companies in question.

Possible drawbacks
Clearly both proposals, especially the merger with another
carmaker, would entail considerable costs and further
drain of management resources. However, the disposal of
Lotus through one of the poposed ways would free up
resources of its parent company and help its parent
company to focus on the pursuit of becoming a player
with global reach in the automotive industry.




Less sensible ideas:

- Go to the Sultan of Brunei, become its financial adviser, tell him to invest in a small sportscar maker in UK
- register the company "YTA Ltd" (Yellow Teeth Automotive)in UK
- buy Lotus Group from DRB Hicom
- buy Aston Martin
- buy Cosworth
- buy the remains of De Tomaso from the administrators (also the former Pininfarina factory)
- assign Lotus with rebodying (with the help of Bertone or Pininfarina) the current Elise
in order to sell it as the new "De Tomaso Vallelunga"
- do the same with the up comming new Esprit: rebody it as new De Tomaso Pantera
- stick Cosworth engines in the De Tomasos
- build all future Aston Martins on the same platforms that Lotus uses
- start building Lotus motorbikes
- unite all companies under the "Yellow Teeth Motors Group"
- marry a british rose (slightly sleazy, slightly coy)
- get knighted for saving two niche carmakers and investing in UK
- start wearing a monocle for no reason
- buy a nice country house
- throw nice and lavish dinner parties reguarly in your garden
- grow a moustache
- start saying "By Jove!", when you're surprised

peter450

1,445 posts

119 months

[news] 
Thursday 7th June 2012 quote quote all
Nardies said:
Statement released by Bahar

Link
I think you would have to be sniffing petrol for real to find any of the content on that site amusing, it's just not funny at all

marshalla

10,872 posts

87 months

[news] 
Thursday 7th June 2012 quote quote all
The Crack Fox said:
I had this weird dream last month where Dany hired me, made me live next door to him, and gave me a lift to work in a helicopter. How odd !

Not sticking up for him, or his plans, but Lotus's main problem of weak sales are a far bigger issue than Bahar's over-expenditure IMO.
Difficult to sell things when you've informed all your dealers that their contracts are being terminated : http://www.autocar.co.uk/node/25353

Years of good will, support and knowledge thrown away.

JonRB

43,511 posts

158 months

[news] 
Thursday 7th June 2012 quote quote all
peter450 said:
I think you would have to be sniffing petrol for real to find any of the content on that site amusing, it's just not funny at all
Really? You've read the whole site going back to 2001 have you? It started out consistently brilliant and, although a little hit & miss these days, is still very good.


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