Wednesday 23rd April

Lotus asks if we're man enough to save Lotus

'Are You a Driver or What?' follows a great 2024 for deliveries - but financial strife continues

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Lotus enjoyed a significantly better 2024 for sales than 2023, with the number of Emiras reaching customers doubling - and with the new Turbo SE on the way - plus thousands more EVs delivered in addition. The overall number was 12,134 cars for Lotus Group in 2024, up from 6,970 in 2023 - or a 74 per cent improvement. For the Emira - or the ‘Sportscars’ category officially, if maybe there are a couple of Evijas to count - the number was 5,272, more than double the previous year’s 2,609. The Eletre and Emeya accounted for 6,862 units, rising from 4,361. 

Which all sounds like good news. Every region bar China enjoyed growth, with North America more than quintupling (just 501 Lotuses were sold there in ‘23) and Europe growing by more than 100 per cent. Total revenues grew by 36 per cent, to $924m. However, the news was less rosy for margin, losses and profit, reflecting the company’s current state, with yet job cuts seemingly inevitable. Alongside $29m of profit (against $102m in 2023), Lotus recorded an operating loss of $786m (up $50m) and a net loss of more than a billion dollars - $1,107,000,000 specifically - which puts 2023’s $750m in the shade somewhat. A climb in the cost of revenues from 2023 to 2024 of $577m to $895m can’t have helped. 

Dr. Daxue Wang, Lotus Technology CFO, said: “We have made continual improvements, streamlined operations to drive efficiency, optimized resource allocation, and reduced operating expenses for five consecutive quarters. Though the Company’s gross margin was lower to three per cent in 2024 due to tariff impact and proactive destock in response to the global trade uncertainties, we have initiated strategic cost optimization to improve profitability. As we progress with the acquisition of Lotus UK, we are committed to driving cost streamlining and operational enhancements across all markets to continuously deliver long-term value.”  It’s a tough time for everyone in automotive right now, compounding Lotus’s plight; let’s hope the new raft of measures - and the latest updates for the cars - have the desired effect. 

Aiming to capitalise on the sales momentum is a new global brand campaign: ‘Are You a Driver or What?’. In a world of the great Jaguar hoo-hah, the latest video is pretty uncontroversial, a fusion of classic motorsport footage with modern product trying oh-so-hard to tie them together. And when presented with an Emira GT4, all wings and slicks and carbon fibre, it makes some sense. But then the proud claim of how Colin Chapman believed race cars needed ‘a lot less’ does than jar somewhat with 2.5-tonne EVs, so the mixed messaging remains exactly that. Probably the aim is to repeat what Porsche has achieved, its period in the doldrums long forgotten with money-making five-door models incorporated alongside the traditional offering. A lot easier said than done, of course, though the continued backing of Geely - for now, at least - remains encouraging. Lotus has been through its fair share of crises, after all. In some respects, the sales news is a step in the right direction; now the rest of the operation must follow suit. 

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• Lotus confirms incoming ‘Hyper Hybrid’ technology
  
• Lotus Emira V6 vs. Porsche 911 Carrera T

[V1rotateV2]

I had to check if it was playing on 2x speed…. could anyone else understand what he was saying???

[craigjm]

V1rotateV2 said:

I had to check if it was playing on 2x speed…. could anyone else understand what he was saying???

He is talking a little fast but its not helped by the constant loud background noise

[BigChiefmuffinAgain]

I think selling 6,862 Eletre and Emeya units, rising from 4,361 in the previous year must count as a total and absolute disaster, given that this was a full year's sales ( possibly not for the Emeya but close ). The factory is geared up for many, many multiples of this. No idea how they are meant to turn this around - it is not like the model is "suddenly" going to grow massively in popularity....

Troubling times.

[Olivergt]

"Which all sounds like good news. Every region bar China enjoyed growth, with North America more than quintupling (just 501 Lotuses were sold there in ‘23) "

I wonder what effect Trumps tarifs are going to have on the NA sales.

[Fetchez la vache]

article said:

Every region bar China enjoyed growth

So what hapenned in China? The EVs are made there...

[simon-tigjs]

A 1.2 billion £ loss ! Little or no dealer infrastructure does nothing to give much confidence in what happens if you buy one and recently PH ran a used guide on the Emira. It made a TVR look potentially reliable .
Ive owned an Elise 111S, and a 340 R and love the spirit of them, but when your spending 60k plus its a whole new ball game

As for the video, whoever did the VO and agreed to release it needs shooting. Sorry

[tr7v8]

V1rotateV2 said:

I had to check if it was playing on 2x speed…. could anyone else understand what he was saying???

This plus the 1/2 screen effect. Dire.

[fantheman80]

Olivergt said:

"Which all sounds like good news. Every region bar China enjoyed growth, with North America more than quintupling (just 501 Lotuses were sold there in ‘23) "

I wonder what effect Trumps tarifs are going to have on the NA sales.

I think as the leccys are made in China thats those two models fecked for the North American market. That leaves the Emira, which is now 25% more expensive. Sure, the equivalent caymen or boxster is 25% more as well, but it cant be good for any OEM

[benjidog]

craigjm said:

V1rotateV2 said:

I had to check if it was playing on 2x speed…. could anyone else understand what he was saying???

He is talking a little fast but its not helped by the constant loud background noise

Swizz Beatz?

[pits]

Lotus in financial trouble in the 90's creates Elise, everyone wants one, because that's what people wanted.
Lotus in financial trouble in the 20's creating things people don't really want. and stop selling what people wanted to start with.

Doesn't surprise me

[craigjm]

tr7v8 said:

V1rotateV2 said:

I had to check if it was playing on 2x speed…. could anyone else understand what he was saying???

This plus the 1/2 screen effect. Dire.

You mean the half screen effect because PH cant embed it properly? its not half screen

[Steve12NG]

A little balance from the so called car media might help.

While PH is happy to breathlessly announce every back yard shedder who has added a few hp and a couple of wings to a Porsche or BMW or whatever, I still await the story about the JUBU Emira 600CS…

[Monkey boy 1]

Lotus recorded an operating loss of $786m (up $50m) and a net loss of more than a billion dollars - $1,107,000,000 specifically

[ThingsBehindTheSun]

Didn't they have something like a 2 year waiting list for the Emira at one point, what happened?

Also has there ever been a point in the last 40 years or so where Lotus wasn't in danger of imminent collapse?

[SDK]

pits said:

Lotus in financial trouble in the 90's creates Elise, everyone wants one, because that's what people wanted.
Lotus in financial trouble in the 20's creating things people don't really want. and stop selling what people wanted to start with.

Doesn't surprise me

Lotus is one of those companies where it appears lots of people want them on forums & social media, but when it comes to parting with their cash they go else where.

To move from 576 global sales in 2022, to 12,134 in 2024 is a big improvement though, but still not meeting (high) expectations

[Angelo1985]

It’s a dead badge. Bit like Lancia or Maserati, sadly.

[SpudLink]

ThingsBehindTheSun said:

Didn't they have something like a 2 year waiting list for the Emira at one point, what happened?
[b]
Also has there ever been a point in the last 40 years or so where Lotus wasn't in danger of imminent collapse?[/b]

There was a brief period in the ‘90s when just about everyone was on the waiting list for a new Elise. They couldn’t build them fast enough.
But even then, were they actually making a profit? I don’t know.

[ThingsBehindTheSun]

SDK said:

Lotus is one of those companies where it appears lots of people want them on forums & social media, but when it comes to parting with their cash they go else where.

I think it takes a certain individual who chooses to purchase a Lotus over the obvious Porsche alternative. This is the same issue Alpine have with the A110, every review is glowing yet they have sold a tiny amount.

At the end of the day a large percentage of people are more attracted by the badge.

[charltjr]

ThingsBehindTheSun said:

I think it takes a certain individual who chooses to purchase a Lotus over the obvious Porsche alternative. This is the same issue Alpine have with the A110, every review is glowing yet they have sold a tiny amount.

At the end of the day a large percentage of people are more attracted by the badge.

Badge is certainly part of it, but a Cayman is the sensible, reliable, well built choice compared to Emira and is way more practical than the A110.

Lotus had to nail their quality issues out of the gate with the Emira, they didn’t and are still suffering the reputation of the launch cars needing a lot of debugging… and waterproofing….

As for their EV, talk about not understanding the brand.

[corcoran]

it's so over.