Lotus fails to secure Government investment

Lotus fails to secure Government investment

Source: AutoExpress

4/14/2011

 

Norfolk-based maker denied regional growth fund cash to help build factory for new models like reborn Esprit.

 

The new Lotus Esprit could be built overseas, after it was revealed that the sportscar maker has been declined investment from the Government’s £1.4 billion strong Regional Growth Fund (RGF).

 

In January, Lotus applied for a £27.5 million loan to build a new production plant at its base in Hethel, Norfolk, which would have created 1200 jobs. The money was requested to help Lotus build its new range of models, which were revealed at last September's Paris Motor Show and include a new Esprit and Elan.

 

However, this round one application was rejected by the Department for Business, Innovation and Skills (BIS), despite £450 million of funding being allocated to Jaguar Land Rover, Bentley, GM and other companies.

 

However, Lotus is not giving up the fight. “Following this decision Group Lotus is currently exploring all available options including the possibility of submitting an updated bid for round two of the RGF, which is set to close on July 1”, the company said in a statement.

 

Without any funding in subsequent rounds of the RGF Lotus may be forced to move some production to Magna Steyr in Austria – where Aston Martin builds the Rapide – or Finnish company Valmet – where Porsche builds the Boxster.

 

Ultimately however, whether Lotus receives any funding from the RGF or not, its Hethel base is set to remain its R&D and engineering headquarters.

 

http://www.autoexpress.co.uk/news/autoexpr...l#ixzz1JZndSgzi

Being that Lotus has shown no sign of adapting their cars to meet modern sport/exotic car standards, I'm not surprised.

 

Would anyone really want to loan Lotus money based on what they've been producing for a while now? The whole lightness philosophy isn't really competitive anymore and hasn't been for a while. What they need first and foremost is horsepower/tq, then leather, comfort, and function. The fact that a track toy (being thats what everyone calls them) gets destroyed by cars with every modern amenity possible goes to show that their business model is dead.

 

I didn't think about it at the time of the Mustang thread, but yes, I would rather have a Mustang than an Exige/Elise/Evora/whatever.

I didn't think about it at the time of the Mustang thread, but yes, I would rather have a Mustang than an Exige/Elise/Evora/whatever.

 

I could think of getting top of the line Exige 240 or 260 over 'stang but not any other.

 

Hard to say which I dislike more; the unknown lotus build quality and fiberglass or the soulless toyota R4 and V6 engines.

I would love to have new Elan or Esprit but the engines must be other than toyota and body something else than fiberglass...

This house of cards is beginning to shake in the wind a bit, which is a shame.

 

If I had to handicap the odds of even the Esprit being built (just the first of their 4-car lineup) in the next four years, I would put it at 50/50 currently.

 

And that's being generous.

This house of cards is beginning to shake in the wind a bit, which is a shame.

 

If I had to handicap the odds of even the Esprit being built (just the first of their 4-car lineup) in the next four years, I would put it at 50/50 currently.

 

And that's being generous.

 

 

I think you are spot on

 

 

Hmmmm so they need money, huh.

So, they will just go to plan "B" and turn over the Esprit's assembly to Valmet Automotive in Finland. And, wind up with a better overall build, to boot !

Being that Lotus has shown no sign of adapting their cars to meet modern sport/exotic car standards, I'm not surprised.

 

Would anyone really want to loan Lotus money based on what they've been producing for a while now? The whole lightness philosophy isn't really competitive anymore and hasn't been for a while. What they need first and foremost is horsepower/tq, then leather, comfort, and function. The fact that a track toy (being thats what everyone calls them) gets destroyed by cars with every modern amenity possible goes to show that their business model is dead.

 

I didn't think about it at the time of the Mustang thread, but yes, I would rather have a Mustang than an Exige/Elise/Evora/whatever.

This house of cards is beginning to shake in the wind a bit, which is a shame.

 

If I had to handicap the odds of even the Esprit being built (just the first of their 4-car lineup) in the next four years, I would put it at 50/50 currently.

 

And that's being generous.

 

 

 

Actually if Lotus gets the money it looks like they'll be fine. Aggressive investment sure...but not necessarily a bad one.

 

"

Michael Kimberley took over as Acting Chief Executive Officer of the Company and its Group from May 2006. He currently chairs the Executive Committee of Lotus Group International Limited ("LGIL") established in February 2006, with Syed Zainal Abidin (Managing Director of Proton Holdings Berhad) and Badrul Feisal (non-executive director of Proton Holdings Berhad). LGIL is the holding company of Lotus Group Plc.

 

Kimberley retired as CEO on 17 July 2009 and was replaced as CEO by Dany T Bahar on 1 October 2009. Bahar was formerly Senior Vice President, Commercial & Brand for Ferrari SpA where he was responsible for worldwide road car sales and after sales business, overall road car and F1 marketing activities, licensing, and merchandising business."

Hmmmm so they need money, huh.

 

yes they do but they want free money

We've written about Bahar's background before, along with the rest of this supposed "dream team" he's assembled over there, but so far there have been zero results that couldn't be placed in the "hype/PR" column.

 

Actual pre-production milestones don't seem to be as much a priority to their leadership group as somehow finding the money to keep the lights on over there, which tells me that it's a very iffy proposition at best.

 

Remove the favorable spin and there are deep, black clouds of smoke billowing out of thier HQ right now...and where there's smoke...

 

Sigh.

 

50/50. Hopefully it improves, the world NEEDS a relevant Lotus back on the supercar stage.

yes they do but they want free money

Now you know money is NEVER free my man.

It's up to people like me to help them understand that.

 

We've written about Bahar's background before, along with the rest of this supposed "dream team" he's assembled over there, but so far there have been zero results that couldn't be placed in the "hype/PR" column.

 

Actual pre-production milestones don't seem to be as much a priority to their leadership group as somehow finding the money to keep the lights on over there, which tells me that it's a very iffy proposition at best.

 

Remove the favorable spin and there are deep, black clouds of smoke billowing out of thier HQ right now...and where there's smoke...

 

Sigh.

 

50/50. Hopefully it improves, the world NEEDS a relevant Lotus back on the supercar stage.

Well, it sounds like most people here (including yourself) would love to see a resurgence of the marque. Perhaps the funds ARE truly all they need. Create a real product, and let it run. That could be all it takes. It seems as though they have all the technology and engine provider agreements etc. in place, they obviously have a nice design for their "future cars" but.......no real pre-production line to speak of, hence, no milestones. No money to start, no product to present. Obviously, something to investigate further as to the true reasons why.

 

It's not surprising they're having trouble finding funds, when their parent company had to syndicate SIX financial institutions (from the SE Asia region) JUST to get $275mm...They don't have the money because they are still a fledgling company with lots of potential, their mistake was bringing executives and board members that didn't have any real money to put in themselves, nor agreements with large sources to actually bankroll the company. VAG or someone else coming in and taking over would do wonders for this group, (like it did for Lambo). Instead they've been running around asking Banks (that aren't lending) and their government to give them money. It's not so much the business plan not smelling good or the company in shambles or falling on their face as rather more so, the environment isn't conducive to generous investment or lending... I cant believe they can't even get $28m pounds to get it done. A company like Lotus. What they need is private money, then it could easily get done (if their books are right).

Now you know money is NEVER free my man.

 

Doesn't stop people wanting it!

 

 

I was going to post this the other day, absolutely delighted that the government has not invested this time around and hopefully the same again in the next round.

I think this Lotus turnaround is absolute balls. Sprinkled with fairy dust. It is so embarrassing and to make matters worse the way they presented the story to the press they have implied the government is not helping economy and industry in the UK, all while Lotus sacked off their entire dealer network.

 

Glad my salary and the huge lumps of tax we cough up everytime we bend over at the petrol pumps is not being splurged into this nonsensical mythical pipe dream laced with a dog egg.

More good news for Lotus. I don't understand what this means, are they just going to let the models with those engines disappear or are there replacements engines happening?

 

Lotus to cease production of 2ZZ-GE engined Elise/Exige

Lotus Cars has notified US dealers that the current generation of 2ZZ-GE engined Exige and Elise will cease production this July on Model Year 11.

 

Toyota has already stopped production of the 2ZZ-GE engine and Lotus has been buliding cars using stockpiled engines ever since.

 

There are to be 3 final Elise and Exige versions – “Final Editions” to be built between now and July 2011, for arrival in the US and Canada between June – August 2011. These are to be produced in strictly limited numbers as the supply of engines for production is approaching exhaustion.

More good news for Lotus. I don't understand what this means, are they just goint to let the models with those engine disappear or are there replacements?

 

Lotus to cease production of 2ZZ-GE engined Elise/Exige

Lotus Cars has notified US dealers that the current generation of 2ZZ-GE engined Exige and Elise will cease production this July on Model Year 11.

 

Toyota has already stopped production of the 2ZZ-GE engine and Lotus has been buliding cars using stockpiled engines ever since.

 

There are to be 3 final Elise and Exige versions – “Final Editions” to be built between now and July 2011, for arrival in the US and Canada between June – August 2011. These are to be produced in strictly limited numbers as the supply of engines for production is approaching exhaustion.

Bottom-line, they are bone dry.

Hadn't heard about this, will ask about but the only thing I can think of is a different engine going in?

Just text an engineer friend if he has heard anything.

 

Lazy googling has thrown up this.

 

http://www.autocar.co.uk/News/NewsArticle/AllCars/238423/

 

Lotus reveals radical new engine

 

Thursday, February 26, 2009

 

 

Lotus has revealed a radical, highly efficient flex-fuel engine concept, called the Omnivore engine, that it will put on display at the Geneva motor show next week.

 

The technology behind the Omnivore concept, Lotus claims, has the potential to dramatically increase the fuel efficiency of biofuel engines.

 

The Omnivore engine is a direct-injection two-stroke unit, and it is notable for two particularly innovative features: a variable compression ratio and a monoblock construction.

 

Saab pioneered the variable compression ratio idea with a hinged block, but the Lotus Omnivore concept is more simple. The Omnivore uses a puck at the top of the combustion chamber, which moves up and down, affecting the compression in the engine depending on the loads placed on the motor.

 

The Omnivore engine’s monoblock construction, meanwhile, eliminates the need for a head gasket, which both reduces weight and improves the engine’s fuel efficiency.

 

“We are delighted to unveil this major milestone in the development of an engine configuration for a new breed of more efficient multi-fuel engines,” said Mike Kimberley, Group Lotus’s CEO. “Sustainable alcohol-based fuels have the potential to reduce the overall CO2 footprint of internal combustion engines towards zero, and for this reason they need to be embraced as future fuels for road transport.”

 

The SAAB engine thing rung a bell in my head. Toyota have recently announced some Euro bound sporty cars.

Going back to Autocar

http://www.autocar.co.uk/News/NewsArticle/AllCars/256559/

 

Toyota FT-86 coupe - full details

 

Thursday, April 14, 2011

 

Toyota will next year fulfil its promise to the world’s car lovers by recreating a range of affordable, sporty Toyotas that bring fun back to driving with its new Toyota FT-86.

 

In an as-yet unspecified Japanese factory in early 2012, the great grandson of Toyota’s revered founder, Akio Toyoda, will put a low-slung, rear-drive, European-developed 2+2 coupé, the FT-86, into production – in large enough volume to satisfy demand from Toyota’s many markets around the world, including Japan, the US and Europe.

 

See Autocar's exclusive studio pics of the Toyota FT-86 II

 

The car will be available with many performance-oriented options, and could be involved in one-make racing, at least in its home country. Starting price in the UK should be close to £25,000 by the time first production cars reach our shores in the second half of next year, and full-house versions could reach the late £20,000s.

 

Soon after Toyota makes its move, Subaru will unveil a different-looking but mechanically similar coupé, called 086a; the two models are part of a co-operative deal that began with Toyota being allowed to use surplus Subaru manufacturing capacity in the US, and has blossomed into an agreement to create “several cars” together.

 

The arrangement allows hard-pressed Subaru to benefit from its giant partner’s market expertise and vast economies of scale, while Toyota gets the use of Subaru’s low and compact flat-four engine and its better track record at making cars keen drivers understand and desire.

 

 

Engine details

 

The engine is basically a 2.0-litre, 16-valve flat four from the Subaru stable but with special modifications to suit this new application. Driving through a six-speed manual gearbox (or a six-speed paddle-shift auto in some markets), the unusual powertrain concentrates its masses considerably lower than an ordinary in-line layout would do, and further back in the car. A standard limited-slip differential further aids traction.

 

Toyota engineers say the engine produces around 200bhp, but final power, torque and fuel figures are still being derived because this Subaru-sourced engine uses a Toyota direct fuel injection system with Toyota’s own engine management.

 

What’s more, Toyota’s engine partner, Yamaha, has been involved in its cylinder head design. Although the car will have a sporty character, Toyota chief Akio Toyoda has decreed that this should be a docile, easy-driving engine that should live up to his company’s jealously guarded reputation for fuel efficiency and low CO2 outputs.

 

Interesting.

 

But then Lotus have been saying/hinting/flirting that they are dropping the Exige/Elise and so that would leave the V6 Evora convertible as their only car.

 

Again, I think the UK government have done well to not throw money into Lotus.

Now the plot thickens, seems as no UK Government money, but a big chunk of change from Malaysia just went their way. Wonder if the plan all along was to move production to mainland EU, maybe same factory as the AM Rapid was outsourced to (will probably also be better build quality!)? Anyway, I hope it all pans out for them and but only time will tell .....

 

Lotus 'revolution' looking likely now

April 15 2011 at 10:19am

 

Five of the best from Lotus (V)

There’s good news for those that drooled over the five new models that Lotus showed off at the Paris Motor Show last year.

 

Malaysia's national carmaker Proton has secured £270 million from six banks to fund a five-year turnaround for Lotus, which it owns.

 

Proton’s MD said the money will primarily be used for product development, and that part of the loan will be used to upgrade the Lotus facilities in Norfolk in England.

 

Under the five-year plan, Lotus aims to almost boost production to 8000 cars a year after 2013 by launching the aforementioned five gorgeous new models (Esprit, Elan, Elite, Elise and Eterne).

 

Group Lotus Chief Executive Officer Dany Bahar said with the new financing, the sports car maker will be able to introduce these much needed new models to bolster sales.

 

Bahar said the new Esprit was expected to be rolled out in March 2013 and hopes it will help Lotus break even in 2014. He added that Lotus currently sells at least 3000 units a year with two models.

 

Proton bought a controlling stake in the British sports and racing car maker in October 1996, but it has remained debt-ridden since then, although the Malaysian firm last year said it was committed to turning it around by 2015. -AFP & IOL

Nice, fma, good find.

 

No wonder the UK told them to pound sand, they had other financing that was already out of the bag...

 

This is good news.

 

"March of 2013" for the new Espirt, I don't believe they've been that precise previously with the timeline.

I didn't think about it at the time of the Mustang thread, but yes, I would rather have a Mustang than an Exige/Elise/Evora/whatever.

 

Wow, what a real shame because I'm pretty sure you don't give a s*** about the stang.

 

It's not just the Mustang, but I get the feeling a run of the mill BMW 3 series, or Boxster would yield the same response in you and quite a few others.

 

While I agree that Lotus needs a new Esprit and other high end cars, they have the market cornered on the 2000 lb go kart...nobody else makes these kinds of cars (at least a non kit car version, like a Caterham). Now to see them die is sad.

 

Instead we need to be force fed more emotionless, disconnected AWD machines with nice interiors and automatic transmission (e.g. R8).

 

Now the plot thickens, seems as no UK Government money, but a big chunk of change from Malaysia just went their way. Wonder if the plan all along was to move production to mainland EU, maybe same factory as the AM Rapid was outsourced to (will probably also be better build quality!)? Anyway, I hope it all pans out for them and but only time will tell .....

 

Lotus 'revolution' looking likely now

April 15 2011 at 10:19am

 

Five of the best from Lotus (V)

There’s good news for those that drooled over the five new models that Lotus showed off at the Paris Motor Show last year.

 

Malaysia's national carmaker Proton has secured £270 million from six banks to fund a five-year turnaround for Lotus, which it owns.

 

Proton’s MD said the money will primarily be used for product development, and that part of the loan will be used to upgrade the Lotus facilities in Norfolk in England.

 

Under the five-year plan, Lotus aims to almost boost production to 8000 cars a year after 2013 by launching the aforementioned five gorgeous new models (Esprit, Elan, Elite, Elise and Eterne).

 

Group Lotus Chief Executive Officer Dany Bahar said with the new financing, the sports car maker will be able to introduce these much needed new models to bolster sales.

 

Bahar said the new Esprit was expected to be rolled out in March 2013 and hopes it will help Lotus break even in 2014. He added that Lotus currently sells at least 3000 units a year with two models.

 

Proton bought a controlling stake in the British sports and racing car maker in October 1996, but it has remained debt-ridden since then, although the Malaysian firm last year said it was committed to turning it around by 2015. -AFP & IOL

 

I think the new lines they debuted a while back looked promising. I'm still waiting to see if they can truly revive the Esprit. Lotus has needed to create a truly new platform for years now.