Tuesday 24th July 2012

Is VW going to buy Lotus?

Volkswagen wants a presence in Asia, could get Lotus as part of a bundle deal to buy Proton

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The multi-part drama that is Lotus took another twist today on news that VW is considering buying Lotus parent company Proton.

The information is sketchy and hasn't been confirmed by VW or Proton, but normally reliable news agency Reuters quotes a source as saying that VW wants the company to increase its foothold in the huge SE Asian market. VW has tried to buy Proton before and if it's successful this time, of course it would mean the German giant would get to plant its flag on a little piece of Norfolk.

The question then is, what would VW do with Lotus?

There's some great product there...

It already owns Lamborghini and Porsche, of course, but there's no reason to think it wouldn't want another specialist brand. For a start VW is on a massive buying spree at the moment, most recently pocketing Ducati and the remainder of Porsche it didn't already own.

The Lotus Engineering side to the company would be enormously valuable to VW and the Wolfsburg wallet is regularly opened to snap up firms and sites that help improve the saleability of its cars, most notably styling house Giugiaro in 2010 and, via Porsche earlier this year, the Nardo high-speed testing ground in southern Italy.

So VW might as well keep on making sports cars at Hethel. Cash from astonishing Chinese sales, mostly notably VWs and Audis, means the firm is swimming in investment money to make it happen.

But even if Lotus stays with new Proton owners DRB-Hicom, or the VW input is watered down to a share of the Malaysian operations (DRB already builds Passats for VW) then there's still good news for Hethel.

Last week DRB executives visited Norfolk and confirmed they were still committed to making a go of it. According to Lotus, DRB put in £100m earlier this year and will put in another £100m next year.

In a statement, the boss of both DRB and Proton (deep breath) Dato' Sri Haji Mohd Khamil Jamil said, "We reaffirm our full and long-term commitment to raise Lotus to the next level of success."

He also said that Lotus was "destined to join the ranks of the great luxury performance brands of the world," although the fate of the 2010 Paris show cars is still unknown.

What do you think? Could Lotus thrive under VW? The floor is open...

 

[Megaflow]

Ok, this story just gets stranger. VW & Lotus... Who saw *that* coming?

[Numeric]

I rather think that VW would argue they have the sports car field covered with Porsche in the £35k+ segment so they would have to see Lotus as a £20-50k segment manufacturer to make sense.

Trouble is to an extent that is what Seat were supposed to be up to in the great VW brand book. But it hasn't worked and I do think that VW could leverage Lotus into the Seat brand in some way.

Trouble is it needs an offshoot in Norfolk like it needs another juxxy - so I would be concerned that they would just shut the place down and use the brand name in other areas.

[Scuffers]

with respect, exactly what have Lotus got that VW does not already have?

I would suggest the last thing they need is Lotus Engineering, they have more than enough capabilities in-house already.

As for Lotus cars, once again, what would they do with them?

[300bhp/ton]

Based on what VW have done to other marques I think this would either ruin Lotus for good, or they'll be out on their ear in the cold. Can't see VW having a positive influence on Lotus.

[Johnboy Mac]

Scuffers said:

As for Lotus cars, once again, what would they do with them?

A fair question, then again buying Proton (and thus Lotus) would no doubt be small change to VW, aided by the fact Proton & VW are already in business together. Maybe a buy out would assist VW's plans to be the biggest - world domination & all that. Better Lotus in VW's hands that Proton would be my layman's view.

[arkenphel]

They could not be more diametrically opposed, a successful mega corporation that churns out boring, and generic clones with a reputation for solidity under several different brand names versus a small eternally struggling sports car maker that glues together exciting cars from bits of plastic.

I think the unique lotus identity (what's left of it) will go the same way as Lamborghini. A slow erosion to soullessness as evidenced by Lambos getting progressively more spectacular, but also more uninteresting.

[thinfourth2]

But just think of what they can do with dashboard plastics


Could be a match made in heaven

Audi can be taught what a spring is

And lotus can get those souft touch plastics that everyone needs in a car

[E38Ross]

300bhp/ton said:

Based on what VW have done to other marques I think this would either ruin Lotus for good, or they'll be out on their ear in the cold. Can't see VW having a positive influence on Lotus.

You mean like lamborghini for instance? What gives you that impression?

[Altstetten]

Maybe not ideal, but if it is this or either a TVR or MG scenario then this has to be the best outcome, surely.
Could well be right that VW doesn't especially need Lotus but if it comes along with Proton they will probably not turn it down.
Maybe Lotus can then get some funding and sympathetic support for realistic new platforms. Might help to finally knock the quality perception on the head too.
All in all, good news IMHO.

[LotusOmega375D]

Oh no. If this happens please don't let VW introduce crazy modern engineering concepts such as "build-quality" or "reliability" into the Lotus range!

• *I am allowed to joke about this as I own one of each marque***

[300bhp/ton]

E38Ross said:

300bhp/ton said:

Based on what VW have done to other marques I think this would either ruin Lotus for good, or they'll be out on their ear in the cold. Can't see VW having a positive influence on Lotus.

You mean like lamborghini for instance? What gives you that impression?

Personally I find almost no interest in VW Lambo's, they are not the same bonkers vehicles they once were. I admit I've not driven any, but every road test I've watched or read seems to suggest they are not remotely similar cars to what they once were.

And how many VW bits make up their great empire? Is a Gallardo maybe related to an R8? What lies beneath the skin of modern Bentleys? Are they maybe a little corporate Audi and VW components?

I'm not saying these are bad cars. But Lotus builds highly specialist cars, going all mas market on the chassis, drive systems and suspension would IMO be at total odds with what a Lotus is and should be. You'd end up with the next Elise being based on a Polo with a Haldex AWD system and some boringly dull interior.

[E38Ross]

300bhp/ton said:

Personally I find almost no interest in VW Lambo's, they are not the same bonkers vehicles they once were. I admit I've not driven any, but every road test I've watched or read seems to suggest they are not remotely similar cars to what they once were.

Most reviews I've read have said the same, and that they're much better for it.

[BertBert]

300bhp/ton said:

I've not driven any

You couldn't make it up.

[Captain Muppet]

Is there any actual news here, or it is annoymous speculation reported as news then copied on to PH?

Basically I need to know if I should slam my Elise, fit banded steelies, stickerbomb the rear clam and fit a rusty bonnet to it somehow.

[300bhp/ton]

BertBert said:

You couldn't make it up.

?

[0a]

New exige based on the fwd Golf platform with a 2.0T engine?

[cjb1]

If Volkswagen = ((Lamborghini+Porsche(Le Mans)+ (Audi(GT Le Mans))+Lotus, does that maybe = (VW+Lotus F1)? Just a thought?

[dxg]

VW have been toying with the idea of a mid engined, small and cheap roadster for a decade now. Hell, Fifth Gear even test drove the second prototype.

Just saying...

(Although the fact that they've stopped and restarted that project so many times suggests they're not exactly wedded to the idea)

[300bhp/ton]

E38Ross said:

Most reviews I've read have said the same, and that they're much better for it.

Maybe. Guess it depends on why you were wanting and buying one. That said, Lambo's have always been big heavy cars, lots of power, very shouty. The VW ones just seem to do the same, but less shouty maybe and actually manage to go round corners.

Lotus' aren't big heavy powerful cars though. Quite the opposite, so apart from money I'm not sure what VW could truly offer. I think they'd just end up diluting the Lotus brand to make it mass appeal. Sure the cars might be good compared to a SEAT, but would it still be a Lotus?

[crofty1984]

I just...
If you think about it...
Could it be that...
Oh fk it.