RE: Lotus boss Jean-Marc Gales: PH Meets (again)

RE: Lotus boss Jean-Marc Gales: PH Meets (again)

Wednesday 8th October 2014

Lotus boss Jean-Marc Gales: PH Meets (again)

Crossovers and front-drive Proton derived products not ruled out - Lotus's new boss explains his masterplan



What a difference four years has made. Back at the 2010 Paris motorshow Lotus seemed to be on a mission to out-spend all of its rivals, with a vast stand and no fewer than five concept cars promising a new era for the British sports car maker under recently-arrived CEO Dany Bahar.

Gales; would you want to be in his shoes?
Gales; would you want to be in his shoes?
In 2014, Lotus didn't even have a stand at Paris, Bahar and his ambitious model plans have long since been ditched and another recently-arrived CEO, Jean-Marc Gales, has announced radical restructuring plans for the company, with over a quarter of the workforce under threat of redundancy.

Fortunately, Gales himself was at Paris, and we grabbed the opportunity to follow up on our chat of a few weeks ago and talk face-to-face about his plans for saving and relaunching the brand.


There's no doubt there's a huge amount of affection for the brand. The question is whether you can spin the existing Elise and Evora platforms into a viable business that produces a substantial number of cars?
"I'm very confident we can do just that. First of all we're going to use those platforms that we have - there's no reason why we should not and many, many reasons why we should spin-off many different products, and enhance existing products.

Expect even more spin-offs of existing platforms
Expect even more spin-offs of existing platforms
"And secondly there are many ideas in three to four years time that would enable us to go in completely different categories of product, which we're currently investigating. It's not a fancy business case where we say we're going to develop something from scratch, first of all we need to turn around the company - otherwise we wouldn't be doing the steps we announced three weeks ago. It's a very sad thing that we had to announce we would put at the threat of redundancy 27 per cent of our workforce.

"But if you put it in simple words we need to reduce costs and sell more cars. We have been at 1,200 cars last year. We are confident, I'm personally very confident, we can go to 3,000 cars. Also confident that we can stay in Norwich - that's a done deal. Norwich and Norfolk belong to the brand, as much as the Eiffel tower belongs to Paris."

So at 3,000 cars Lotus would be profitable and sustainable?
"3,000 is the target, without giving any indications on anything else. I would like to give you that information, but I cannot disclose it right now."

How much can you change the existing platform?
"There is a tub and there is a subframe where you have the engine, so you can do virtually everything. You're going to see in the next four to six months that we've worked on many things to broaden the appeal of the platform, and to make more variants available to market."

Significant updates for Evora on urgent to-do list
Significant updates for Evora on urgent to-do list
Like bigger doors?
"Or narrower sills, without changing the doors."

So we're going to be seeing a substantially revised Evora, not just an updated car that meets US crash tests?
"That's absolutely correct. We are staying with the existing Evora but making it better. We make it better first of all by making it faster, second there were some practical things that were on the list of improvements like making it easier to get in and out of the car. Thirdly we also have an interior that looks different than the current interior. The car will be changed in most parts."

And when will you start developing all-new models?
"I'm of the firm conviction and I am very confident that the cars we will launch on the existing platform, the improved platform, within the next three years will be cars the market will like... The whole concept of our cars is extremely modern. The Alfa 4C that's just been launched has a carbon tub that is barely 3kg lighter than our 17-year old Elise tub."

Lotus belongs at Hethel says the new boss
Lotus belongs at Hethel says the new boss
And beyond that?
"If we look long term, four to six years in the future, then our partner is Proton. Proton is a volume manufacturer and has parts modules we could use for future models... You've heard that we are already investigating other types of vehicle like saloons and crossovers, and that's a distinct possibility. I wouldn't exclude anything now at the moment. I would only exclude anything that doesn't fit the Lotus brand."

Proton only has front-wheel drive models, so presumably any front-engined car using Proton parts would be front-wheel drive?
"I can tell you if we were to do a front engined sport scar it would be a real Lotus. Which means that for ride and handling it could be benchmark."

But, to press you, could it have front-wheel drive?
"It will have Lotus DNA, whatever it is, and be true to it."

Dany Bahar claimed Lotus would struggle to stay alive making cars costing less than $70,000 - one part of his strategy lots of analysts agreed with. Do you share that view?
"Two thirds of our sales are now over $70,000 - one third Evora and one third Exige, so there you are."

A new generation of front-driven Lotuses?
A new generation of front-driven Lotuses?
But can you keep producing cars under that price point - are cheaper models loss leaders?
"Certainly not. We don't lose on any of our cars, that's not a philosophy I subscribe to. If you sell a car you need to make some money out of it. However there is a demand especially in Japan for the Elise 1.6 and we will satisfy that demand, there's no need to drop that one. But we're certainly going to have in the future more high-powered versions in the range, because that's the general trend as well."

Can you keep up with competitors like the Porsche 911 Turbo and McLaren P13 - do they put a ceiling on what you can charge for the existing platform?
"People are asking me all the time whether the Evora, which has been here since 2009, is an old concept... Forgive me for citing a competitor, but the Porsche 911 has been the same basic concept for 50 years. It's been developed, redeveloped, enhanced - that's what we're going to do with our platform. Most successful sports cars in history are evolutions of what's gone before. For the Evora and Exige, there will be an evolutionary step. I don't say we're not going to develop a totally new sports car in the next 10 years because I don't want to look that far into the future, but with constant evolution of the current cars we will satisfy the demand of our customers and our potential new customers."

 

Author
Discussion

GTEYE

Original Poster:

2,096 posts

210 months

Wednesday 8th October 2014
quotequote all
I'm not sure that a more of the same strategy actually bodes that well for the future.

It doesn't seem to have worked that well in the very recent past.

The market especially at the higher price points increasingly demands perfection or close to it in all aspects of the car. Lotus IMHO is a bit of a one trick pony.

I wish them well though.

forester2945

32 posts

157 months

Wednesday 8th October 2014
quotequote all
Lotus sold 1300 ish last year and are double that this year, more of the same seems to be doing ok!

The V6 used in the Evora/Exige lineup has been run at 414bhp by several cars, now that would make a very interesting R variant of both cars.

As a former Elise owner eyeing up an Exige S Roadster I am very excited by what Lotus are doing.

Let the usual 'they should make an MX-5 for £10,000' brigade begin again .....................

braddo

10,480 posts

188 months

Wednesday 8th October 2014
quotequote all
I like this guy.

With hindsight the Bahar years were such a monumental waste - money, time, brand image. Forum threads.... hehe

Chris Y

221 posts

188 months

Wednesday 8th October 2014
quotequote all
SUV's and crossovers clearly do not fit the Lotus brand in my eyes. Lotus = sports car!

mrdemon

21,146 posts

265 months

Wednesday 8th October 2014
quotequote all
Faster is NOT better, it needs a new engine and a lower price that's all.

car is a dead horse until they get the co2 below 220.

cutting the roof off or having thinner sills is a non issue.

just make a nice car !!!!

the 991GTS runs 430BHP and runs a 224 CO2 low tax band !!!

kambites

67,571 posts

221 months

Wednesday 8th October 2014
quotequote all
mrdemon said:
the 991GTS runs 430BHP and runs a 224 CO2 low tax band !!!
And costs how much?

mrdemon

21,146 posts

265 months

Wednesday 8th October 2014
quotequote all
ok the new Boxster S has the same 340 BHP as the evora and has a co2 of 190 for only £47k

move along !!!

The Evora is a great car, it just needs a great Engine and a lower price tag.

no one wants hi co2 cars which do 20mpg £1k new car tax, with performance that poor.

Evora UK sales are next to zero for 2014, the numbers are madfe to look nice but UK sales are very very low for the EVora.

Edited by mrdemon on Wednesday 8th October 13:12

kambites

67,571 posts

221 months

Wednesday 8th October 2014
quotequote all
mrdemon said:
ok the new Boxster S has the same 340 BHP as the evora and has a co2 of 190 for only £47k

move along !!!
Perhaps a more reasonable comparison. I can't see many of these selling as company cars though, so CO2 itself is a bit meaningless. Fuel economy is pretty dire though.

I think Lotus have (probably quite rightly) given up on the UK market for the moment.

Ex Boy Racer

1,151 posts

192 months

Wednesday 8th October 2014
quotequote all
So, to sum up:

"we might make some new cars. If we do, they will be Lotus-y"

Very revealing

braddo

10,480 posts

188 months

Wednesday 8th October 2014
quotequote all
mrdemon said:
... the new Boxster S ... only £47k ...
It would be very interesting to know what the average selling prices of the different Porsche models are. Does ANYONE in the UK spend less than £3k on options when buying a Boxster or Cayman? The Cayman GTS thread in the Porsche section has some people apparently paying £65-£75k for their desired specs!!

Frimley111R

15,663 posts

234 months

Wednesday 8th October 2014
quotequote all
mrdemon said:
no one wants hi co2 cars which do 20mpg £1k new car tax, with performance that poor.
People who buy cars like these have CO2 and mpg very very low down on their list of requirements. They don't buy them expecting £30 road tax and 50 mpg.

Frimley111R

15,663 posts

234 months

Wednesday 8th October 2014
quotequote all
Dear PH,

Please please please spare us the crap about DB that you start every bloody Lotus story with. We know! We get it! We were there FFS!!! Move on!

smile

Europa1

10,923 posts

188 months

Wednesday 8th October 2014
quotequote all
Chris Y said:
SUV's and crossovers clearly do not fit the Lotus brand in my eyes. Lotus = sports car!
People said that about Porsche when they launched the Cayenne, now it's their biggest moneyspinner. Despite being fugly.

kambites

67,571 posts

221 months

Wednesday 8th October 2014
quotequote all
Frimley111R said:
mrdemon said:
no one wants hi co2 cars which do 20mpg £1k new car tax, with performance that poor.
People who buy cars like these have CO2 and mpg very very low down on their list of requirements. They don't buy them expecting £30 road tax and 50 mpg.
I think you'd be surprised at how many people spending £50k+ on a sports car do care about economy and road tax band. I've no idea why, but in my experience it's true.

blueg33

35,901 posts

224 months

Wednesday 8th October 2014
quotequote all
kambites said:
I think you'd be surprised at how many people spending £50k+ on a sports car do care about economy and road tax band. I've no idea why, but in my experience it's true.
Road tax band no, but foir my 20k miles a year economy is a factor. When I drive for work I get 45ppm, so its nice to see the fuel bill less than th eexpenses claim, otherwise I am paying to go to work meetings

Impasse

15,099 posts

241 months

Wednesday 8th October 2014
quotequote all
Porsche fans are funny. If it can't be measured by a stopwatch, tape measure or a set of scales then it isn't important to them.



Anyway, Lotus have had a good six months or so just recently. They've recorded their best half year sales since 08/09. In just the June to August period of this year they've sold 609 cars. Clicky

mrdemon

21,146 posts

265 months

Wednesday 8th October 2014
quotequote all
kambites said:
I think you'd be surprised at how many people spending £50k+ on a sports car do care about economy and road tax band. I've no idea why, but in my experience it's true.
it's very true, I own 3 cars, I work hard to run 3 cars, all are sub 224 co2 and do ok MPG for that type of car.

I ran a M3 V8 for 3 months it was a right arse £500 to tax it and 17 mpg wears thin.

I spend 4k a year on petrol and £700 on 3 x car tax.

if all 3 were sub 20 mpg and £480 to tax my running costs would jump from £4.7k to £6880 PA or £180 a month more every month !!!!

Evora needs a new engine to sell world wide it's a old nasty thing and def not the right engine for the exige either.

kambites

67,571 posts

221 months

Wednesday 8th October 2014
quotequote all
mrdemon said:
Evora needs a new engine to sell world wide it's a old nasty thing and def not the right engine for the exige either.
In that case Lotus are doomed, because they haven't got one.

I rather suspect it's not true though. I think in their key markets (China and the US) fuel economy and CO2 are far less of a concern because the tax systems don't punish them quite so much. Apart from it's poor efficiency, I think the supercharged V6 is a fabulous engine for the application.

Edited by kambites on Wednesday 8th October 13:52

MikeGoodwin

3,339 posts

117 months

Wednesday 8th October 2014
quotequote all
mrdemon said:
it's very true, I own 3 cars, I work hard to run 3 cars, all are sub 224 co2 and do ok MPG for that type of car.

I ran a M3 V8 for 3 months it was a right arse £500 to tax it and 17 mpg wears thin.

I spend 4k a year on petrol and £700 on 3 x car tax.

if all 3 were sub 20 mpg and £480 to tax my running costs would jump from £4.7k to £6880 PA or £180 a month more every month !!!!

Evora needs a new engine to sell world wide it's a old nasty thing and def not the right engine for the exige either.
I thought that (and im assuming the blown 3.5 V6 is the same as the one in the Exige) the V6 was a bit of a monster. Certainly sounds good enough!

forester2945

32 posts

157 months

Wednesday 8th October 2014
quotequote all
mrdemon said:
Evora needs a new engine to sell world wide it's a old nasty thing and def not the right engine for the exige either.
Not the right engine for the Exige? have you driven/seen one?