Wednesday 28th January 2009

Lotus Feeling Optimistic

Government support given a warm welcome

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Lotus Chief Executive Mike Kimberley has welcomed the government support package for the motor industry, announced yesterday by Lord Mandelson.

'I am delighted that the UK government has recognised the vital importance to the automotive industry of research into green, environmental and low carbon vehicle solutions,' he said.

Kimberley stressed that the company has been focussed on these areas for some time, noting that going green 'stays true to the Lotus brand value of creating light weight and efficient vehicles.'

This fighting talk comes after last December when Lotus revealed that sales were down by 73%. However the month before the carmaker had announced a £2million profit for the last financial year, which was a dramatic turnaround on the year ending March '07.

Kimberly accepted that difficult times were ahead. 'It will be a very tough year for the global automotive industry, but Lotus is reasonably placed compared to some other car companies,' he added.

[Ed.]

I thought the handouts were aimed at major manufacturers (not saying lotus aren't more deserving than the others), is norfolk a labour voters stronghold?

[Soop Dogg]

Lotus CARS may not be a major manufacturer, but Lotus ENGINEERING does work for all sorts of manufacturers. If those manufacturers were to pull the plug on a lot of r&d work, Lotus might have more problems.

Come to think of it, what major manufacturers have we got left in this country then? Most of the large car plants belong to foreign owned companies nowadays. Surely we aren't bailing them out too?

[chris_crossley]

If lotus did an hydrogen/honda rip off as an engine then i would be up for one. Just as long as its priced at the same price as petrol.
They are well placed to supply a small fast green sports car.

They could end up being big! Hence a future investment

[Ex Boy Racer]

Just remember they are owned and directed by Proton - not the most sensible company in the world...

[Hedgerley]

I think we should avoid criticising Proton as far as Lotus are concerned - they have been by far and away the most beneficial and benign owner Lotus have ever had. They have invested significant funds over the years and essentially wrote off over £50m in loans and accumilated debt last year by re-capitalising the company. Thats what allowed Lotus to post a £2m profit. And don't forget they persuaded MJK to return - he has turned them around over the past 3 years. Their style has been hands off and the workforce have really grasped the opportunity.

Lotus are, I believe, in the sweet spot right now. They have turned significantly green in recent years and have dozens of green technology projects underway, not just the visible ones such as Tesla. It will be interesting to see if any of this new funding heads there way, either directly or via their clients - the recession could be the best thing thats happened to Lotus in years!

[mark3man]

Soop Dogg said:

Come to think of it, what major manufacturers have we got left in this country then? Most of the large car plants belong to foreign owned companies nowadays. Surely we aren't bailing them out too?

If it keeps workers in jobs and orders going to local suppliers these car assembly plants will probably get help.
Lotus are a bit different - car construction and car engineering consultancy. MJK is a great guy to talk to. Huge experience.

[Ipelm]

Wow, the world is really getting strange, have we been propelled overnight into an alternative universe where the opposite is always true. Where is Spock and fatso when you REALLY need them?

[nightflight]

This day and age, you have to innovate to survive, and Lotus is an innovative company. Good luck to them. Other uk companies have not moved on, and have failed. I hope Lotus will survive these difficult times, and will have a secure future.

[Insight]

Saw one of the new Evora's last night on the M25. Was fun, I was racing it, so was Mr Ford Transit and he was racing us. Was a Left Hand Drive black one - looked fantastic on the road. Good luck Lotus

[jazzyjeff]

Hedgerley said:

I think we should avoid criticising Proton as far as Lotus are concerned - they have been by far and away the most beneficial and benign owner Lotus have ever had. They have invested significant funds over the years and essentially wrote off over £50m in loans and accumilated debt last year by re-capitalising the company. Thats what allowed Lotus to post a £2m profit. And don't forget they persuaded MJK to return - he has turned them around over the past 3 years. Their style has been hands off and the workforce have really grasped the opportunity.

Lotus are, I believe, in the sweet spot right now. They have turned significantly green in recent years and have dozens of green technology projects underway, not just the visible ones such as Tesla. It will be interesting to see if any of this new funding heads there way, either directly or via their clients - the recession could be the best thing thats happened to Lotus in years!

Agreed... I don't think anyone could seriously criticise Proton's management of the company. But it is of course a sympathetic relationship - Lotus' input into suspension design and tweaking of Proton's largely uninspiring bread and butter models has been invaluable to them and no doubt valued at a much lower rate than if this expertise had had to be bought in from elsewhere.

JJ

[KENZ]

Agree with help..Reckon they would be well placed for a cheaper version of the Tesla.. Can't wait