Wednesday 23rd June 2010

Loss-Making Lotus Pledges 5 Year Turnaround

New product plan promises premium competitors for Lamborghini, Ferrari, Porsche

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Dany Bahar will shift company focus...

Lotus will be transformed from 'a track car specialist' to a premium competitor for Porsche and Ferrari, under new plans revealed by its owner Proton.

The news has emerged from Malaysia, where Proton bosses have been briefing journalists on their latest plans for Group Lotus, saying the aim is to make the company profitable within five years.

Proton's group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir told reporters yesterday that the main focus of the new five-year plan was to do battle with Porsche and Ferrari.

...so expect less of this sort of thing!

"Group Lotus is targeted to have the best car in class products across the key luxury sports car segment with unparalleled brand experience, sales and after-sales service, efficiency and high quality product.

"It also targeted to increased product volume to 8,000 units per annum by 2015 from the current 2,000 units per annum," he said according to a report by the Malaysian National News Agency. Apparently the average cost of a Lotus will rise to between £80-£110k, with a new emphasis on high technology instead of the classic Lotus attributes of simplicity and light weight.

Lotus Chief Executive Dany Bahar is also reported to have said the company's aim is to transform Lotus into a Ferrari and Lamborghini rival.

On June 21st, the company's PR department in Hethel published an oddly cryptic press release which says new light will be shed on the company's plans at the Paris show later this year. Either that or the Lotus PR team are back on the mushrooms. It reads as follows:

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So you think you've seen all there is to see?Think again.

As peace-loving druids gather to witness the magic of the annual Summer Solstice at one of the UK's most symbolic landmarks, prepare yourself to witness the dawning of a new era for Lotus.

Your journey begins here and now on the longest day of the year and exactly 100 days before the 2010 Paris Motor Show where Lotus is set to unveil the future evolution of an iconic British brand.

They say a picture tells a thousand stories, we're only really interested in one. Buckle up and join us for the ride. Expect the unexpected.
Hall 5.1 16.45 CET 30th September 2010

***

Yes, they actually mentioned druids, and just to make certain we weren't imagining things, they even attached this image of 'the 'henge'. Crazy, man...

[Stu_00]

Better stock up on what there good at!

2-11 / Elise platform cars

[TheRoadWarrior]

I despair.. has the world gone mad?!

This has got to be a joke shirly?

"Apparently the average cost of a Lotus will rise to between £80 and £110k, with a new emphasis on high technology instead of the classic Lotus attributes of simplicity and light weight."

But thats the only reason to buy a Lotus!! FFS.

Edited by TheRoadWarrior on Wednesday 23 June 12:42

[Wilburo]

I'm under the impression that the luxury car market will shrink further from those mid-2000s figures, so I'm surprised they would want to enter an already crowded market - and leave current customers behind.

I thought the future was an MX-5 equivalent Elan!

[Fire99]

TheRoadWarrior said:

between £80 and £110k,

That's a fair ol spectrum.. I'll take all they can sell me for 80 quid.

[ZOLLAR]

lotus said:

Apparently the average cost of a Lotus will rise to between £80 and £110k

why can't they stick to what they are good at?, why move into a market where they won't be the best at what they do?.

[Vladimir Pukin]

Can they just hurry up and put a supercharger on the Evora please.

Although I'm not paying 80K for it.

Edited by Vladimir Pukin on Wednesday 23 June 12:48

[Daveyraveygravey]

I know they can't survive on making just 2k cars a year, but I don't think this is the right move for them either. A lot of people are reluctant to shell out £50-£60k for the Evora when that buys you a lot of premium metal, how are they going to persuade people to spend double that?

And do we need any more high tech? Just when people are coming round to the benefits of lightness and simplicity and proper engineering...

[Funk]

If they move the focus away from what they do best, it'll be the end of Lotus.

Whilst undoubtedly competent cars, the lack of success shown by the Evora and Europa I can't see that pushing Lotus into territory wholly-owned by the likes of Porsche and Ferrari is going to end well.

Even Lamborghini are now saying that weight-saving and lightness are key priorities (handling, acceleration, top speed - in that order).

Edited by Funk on Wednesday 23 June 12:50

[marshalla]

Is it April the first already ?

ACBC always wanted to take the company up to compete with Ferrari etc., but history shows us that that's not what their customers want - nor that the customers of the companies they seem to aspire to compete with are that interested either.

I fear we are witnessing the death throes of another great car maker.

[Olivera]

"It also targeted to increased product volume to 8,000 units per annum by 2015 from the current 2,000 units per annum, he said according to a report by the Malaysian National News Agency. Apparently the average cost of a Lotus will rise to between £80 and £110k."

So they want to sell cars at (roughly) ferrari pricing but at 50% greater volume?

[A205GTI]

Playing and paying for F1 Cars perhaps has made them look and see Mclaren, Ferrari and think hmmm maybe we can charge that for a road car!

[bobbylondonuk]

Lotus cars Done!

Everyone is chasing prestige and larger prices...Lotus is better without expensive crap in a light package that goes like stink.

Poor decision Lotus...unless you want to have 1 premium product above the current lineup for the prestige and brand.

[Wilburo]

Well, they currently charge £50k for something with an Avensis engine / gearbox, so no doubt they'll be rolling the Aygo drive-train into the bargain-spec £80k model.

[robbieduncan]

If this is true then I can't imagine I'll buy another Lotus. There is nothing in the marketplace quite like an Elise. But an 80k 1.5 ton+ "sports" car. Loads.

[Roberty]

So Lotus had it right all along keep it light and simple and now that others are realising this they've decided to take a U-turn on there philosophys and do something else!

Bloody meddling Malaysians!

If there not cutting down the rainforest to plant oil palm for so called eco-fuel there messing with our motoring heritage!

Lets have a whip round and buy it back off them before the bugger it it for everyone?

[kambites]

Personally, I suspect it has less to do with Proton's interference and more to do with the new execs. Without Proton, Lotus Cars probably wouldn't exist at all, so we shouldn't blame them too loudly.

[neil_bolton]

Colin will be turning furiously in his grave

[ewenm]

This scares me. Hopefully rather than "high tech instead of simplicity and lightness" it'll really be 2high tech alongside simplicity and lightness".

[Grey Ghost]

Premium prices, competing in a premium market already saturated with manufacturers and alienating the current Lotus owner who enjoys the "added lightness" approach championed by Colin Chapman.....company to go bust in 5 years as opposed to be profitable in my mind.

Idiot idea.

[rudecherub]

Funk said:

Even Lamborghini are now saying that weight-saving and lightness are key priorities (handling, acceleration, top speed - in that order).

Edited by Funk on Wednesday 23 June 12:50

This was my first thought having read the interview with the Lamboghini boss - who was saying the aim is not more power but less weight it would seem that Lotus is best place to compete in the new reality.

Still the hope is the new Esprit *will* be a supercar.