Lotus Is Broke, Suspends Work On All New Models

Firm 'looks to buy' Norfolk-based Group Lotus

 

An investment capital firm has said it is considering buying Norfolk-based sports car maker Group Lotus.

 

Lotus was bought in 1996 by Proton, which in turn was acquired by Malaysia's DRB-Hicom earlier this year.

 

Reports suggested DRB-Hicom had been considering administration as a way of freeing itself from Lotus's debts, but this was denied by Lotus last week.

 

Genii Capital said it was looking over the company books before deciding whether to make an offer.

 

A spokesman for the Luxemberg-based venture capital firm, which owns the Lotus F1 team - formerly owned by Group Lotus, said it respected the "historic link" between Lotus and Norfolk.

 

"We would not be looking to move anything away from there," he said.

 

No-one from Group Lotus was available to comment on Saturday, but last week a spokesperson said: "The new Proton owners DRB-Hicom are currently in the middle of their due diligence of Group Lotus.

 

"There have been and continue to be positive discussions between Group Lotus senior management and senior management at DRB-Hicom both here in Hethel and in Malaysia.

 

"Despite various rumours in the media to the contrary, at no point has DRB-Hicom indicated to Group Lotus that they intend to put the company into administration and we welcome the opportunity to put that rumour, along with incorrect speculation that production has stopped, that Dany Bahar is no longer CEO and that we are no longer involved in F1, to bed."

 

Earlier in April, the Lotus F1 team formally ended its title sponsorship with the Lotus Group amid uncertainty about the group's future, but said it would continue to use the Lotus name.

 

The spokesperson added: "It's no secret that we are going through a very difficult time at the moment due to the change in ownership but we're doing everything we can to get through this period and come out the other side stronger than before."

 

In October 2011, Lotus received £10.4m of government funding and announced plans to create 1,000 jobs as part of a five to six-year expansion plan.

This Bahar guy, what were his pipe dreams? Did he dream of building cars to match Ferrari or something and this just wasn't doable...?

Press release fm DRB-Hicom

 

"DRB-Hicom has not decided to sell Lotus & is still supporting Lotus both financially & management wise"

From Autocar

"Lotus Cars has secured enough investment from its new Malaysian owner, the automotive giant DRB-Hicom, to restore full car production at its Hethel assembly plant in the next few days, and continue build-up to the launch of the first of its new-wave models, the Esprit supercar due in showrooms before the end of 2013."

 

And the new Exige is getting steller reviews. Finally some good news for Lotus.

And the new Exige is getting steller reviews. Finally some good news for Lotus.

 

my family is considering to be the official dealer of lotus here in kuwait, what do you think ? good or bad idea ?

It could be a good move but personally I would research into what they did with their dealers recently.

The thought of having to buy on stock on a regular basis to then get utterly shafted because of the CEOs overly ambitious and unrealistic plans is not a good basis.

Do you know anyone that would be buy a lotus?

 

It could be a good move but personally I would research into what they did with their dealers recently.

The thought of having to buy on stock on a regular basis to then get utterly shafted because of the CEOs overly ambitious and unrealistic plans is not a good basis.

Do you know anyone that would be buy a lotus?

well now they are in london discussing the deal and lotus plans for the future.

 

in the current line up not many but if they stick to their plan ( 5 models in the next few years ) they will do well here in the middle east

 

I don't believe Lotus on it's own is a sustainable business model. The brand needs rebuilding and even assuming management does an adequate job regaining market share, it will take a few years to come to fruition.

I don't believe Lotus on it's own is a sustainable business model. The brand needs rebuilding and even assuming management does an adequate job regaining market share, it will take a few years to come to fruition.

 

Unfortunately, the Lotus motto of lightweight enthusiast cars just isn't as viable today as it was 20-30 years ago.

 

Sad.

BREAKING NEWS: Lotus confirms chief exec Dany Bahar suspended.

BREAKING NEWS: Lotus confirms chief exec Dany Bahar suspended.

 

BHAAAAAAAAAAHAAHAAA, about time.

http://www.autosport.com/news/report.php/id/99862

Too late. Squandered massive amounts of money facilitating half hearted clay mock ups which if ever did make to production would have brought Lotus to its knees.

 

Here's an idea, lets go racing. No really, lets enter every conceivable form of motorsport to further establish our brand and resurrect our heritage. Oh, what's that you say, you would like to purchase an automobile from us now that you've deemed us relevant after watching us race and recognizing our brand. Well, have I got a bargain for you! Four years from now, you can purchase one of our cars that has thrown out all those racing and founding principles that has made Lotus what is today, er, yesterday. And, it will be over-styled in a Japanese made mad love to the Mafia kind of way. Sign here?

 

Danny is a good marketer. He did great things with the Exige V6. Failed at it not being available in North America. He hired the AMG engine wizard to develop a rumored fabulous engine. Thumbs up! Unfortunately, he also hired that styling guy from Ferrari, who, well, yeah, thumbs down. Oh, he also made it known that he was killing the Evora, soon, which really drove up demand for the car, cough..cough. One car available in North America. And I'm killing it because its not good enough. Ok. Check your math, sir.

 

Notice how I did not mention world renowned poet Alpine Swiss Mix Beatzzz. "Lyrically please", to quote Biggy.

Lotus have been very tight lipped about the accusations but one or two English journos are saying that the allegation will not stick and then remaining tight lipped. Cue roll eyes.

 

However

 

http://www.edp24.co.uk/home/builder_s_high...bahar_1_1343332

 

Self-employed builder Nicholas Foreman, who trades as J-Max Builders and Carpenters, has filed a joint claim against Lotus Cars Ltd and its chief executive Dany Bahar for £92,485, for work at Wychwood House on Norwich Road, in Hethersett.

 

Claims documents filed at the High Court of Justice in London reveal the action centres upon almost £375,000 worth of renovation work, paid for by the loss-making company, of a house rented by the chief executive.

 

Mr Foreman, whose company is listed as being based at St Andrew’s Business Park, in Thorpe, said he quoted for “substantial” building work valued at almost £375,000 before Mr Bahar was due to move in, which was paid for by cheque from a Lotus Cars Ltd bank account. However, two invoices for extra work, which was directly ordered by Mr Bahar to be completed as quickly as possible, have been left unpaid.

 

Mr Foreman said that when he approached Lotus Cars Ltd for payment he was told for the first time through solicitors of a potential dispute over workmanship.

 

The claim form said: “In early February 2012 the second defendant’s (Lotus Cars Ltd) solicitors delivered a CD containing 103 photographs which allegedly highlighted the defendant’s (Danny Bahar) complaints about the claimant’s (Mr Foreman) work.

 

“Of those photographs, 61 related to work carried out by contractors not connected to the claimant (Mr Foreman) and the remaining photographs show 25 minor snagging defects (such as in one case a single screw missing from a doorknob and in another a small dirty mark on a door), which the claimant (Mr Foreman) had expected to rectify on his planned return visit on 16 October 2011.

 

“This he had organised with the first defendant (Mr Bahar) precisely for the purpose of attending to any snagging issues, in accordance with common building practice.

 

“The claimant (Mr Foreman) estimates that the said snagging items would have taken no more than four man-days to attend to at a cost (to himself) of less than £1,000.”

 

Mr Foreman claims he was initially approached by Lotus Group employee Robert Hardingham to rectify “sub-standard” work by a previous builder on Mr Bahar’s previous home, which was paid for from a personal account.

 

The claim has been filed through solicitors Hansells, who served the papers on Lotus Cars Ltd and Dany Bahar in early March. Lotus and Mr Bahar must file a defence by the beginning of May.

 

Earlier this year the Malaysian government’s investment firm Khazanah Nasional sold its controlling stake in Proton to Malaysian car distributor and importer DRB-Hicom in a £276m dea.

 

This sparked speculation about the future of Group Lotus, and whether the new owners would sign up to the five-year turnaround for the loss making company to move from a specialist niche car company to a profitable sports car brand.

 

Lotus declined to comment.

CEO Dany Bahar Fired

 

http://www.motorauthority.com/news/1076790...any-bahar-fired

 

Following a suspension last month amid an investigation into misconduct--likely related to his use of company funds to extensively refurbish his several houses--Lotus CEO Dany Bahar has been fired, effective immediately.

 

The announcement, made in a release by Group Lotus, Plc, said the decision to fire Bahar was made by the company's board on the basis of the results of parent company DRB-Hicom's investigation. Bahar's removal marks the second automotive CEO to be done in by inordinate expenses recently, following Ernst Lieb's departure from Mercedes-Benz USA.

 

At present, no replacement for Bahar has been selected, but Aslam Farikullah has been appointed Group Lotus' chief operating officer, also effective immediately, presumably to run the day-to-day business until a suitable CEO can be found.

sniffpetrol says

 

 

I mean Danny says

 

 

You will have heard today’s reports that I have been dismissed from Lotus. These allegations are false and have been spread by enemies of Premium Lifestyle Aspirational Premium Excellence who seek to undermine me because I have such nice hair. I am also capable of holding my breath for over 45 minutes.

 

Rest assured, I am still fully in control at Lotus. The only change to note is that The Five Year Plan will no longer be orchestrated from my office suite at Hethel. I did not like it which is why I ordered for my security pass to be deactivated and for my remaining possessions to be thrown into a skip. I am delighted to say that a great many of the staff agreed to assist in making this possible. I have retained the signed photograph of me and Mickey Rourke as a reminder of how much I inspired him. It is a fact that he decided to make The Wrestler after I told him how I invented the monorail.

 

From now on your messages of goodwill, your donations and your requests for my discarded skin should be sent to the new Five Year Plan Operational Office, c/o Norwich Airport Premier Inn. If I concentrate very hard, I can become mostly invisible.

 

Saint Dany of Bahar

 

http://sniffpetrol.com/

CEO Dany Bahar Fired

 

http://www.motorauthority.com/news/1076790...any-bahar-fired

 

Wow, so there is a God after all. I will have to tell D. Wiggs he was right...

Wow, so there is a God after all. I will have to tell D. Wiggs he was right...

 

Oh the irony.

I wonder if Swizz Beatz is going to be the next to go.

Wow, so there is a God after all. I will have to tell D. Wiggs he was right...

I think D.Wiggs thinks of him more as the Big bully in the sky then God.

I think D.Wiggs thinks of him more as the Big bully in the sky then God.

 

:lol2:

The plans may not be scrapped after all

 

http://www.motorauthority.com/news/1077973...-five-year-plan

 

The Malaysian investment group that recently bought a controlling stake of Proton and with it the control of Lotus, has reportedly scrapped the overly ambitious five-year turnaround plan first announced by ousted CEO Dany Bahar at the 2010 Paris Auto Show.

 

A new plan, which is expected to be finalized over the next six to 12 months, is said to be much more realistic.

 

The information was revealed during a meeting between DRB-Hicom management and analysts at RHB Research, reports Malaysian newspaper The Star.

 

The biggest change will be the scrapping of plans for six new Lotus models in favor of no more than three. The first of these is still expected to be a new Esprit supercar, as development work on the car, and its new V-8 engine, were well underway before the sale of Lotus’ parent company Proton.

 

Expenses will also be drastically reduced, which means we’re likely to see a reduction in Lotus’ motorsports participation as well as the number of its high-cost consultants. Some job cuts are expected, though these will be mostly from areas not directly related to the cars that will be launched.

 

Finally, the new plan is expected to make greater use of the engineering expertise and skill sets at Lotus, which would not only help Lotus deliver its future models faster but could be sold to rival firms.

 

It has also been revealed that DRB-Hicom has already injected close to $155 million into Lotus since taking controlling of the company and that it is willing to invest an additional $155 million by 2013. This is on top of a previous loan of $400 million from six main creditors in 2010, which was guaranteed at the time of its issue by Proton.

 

There are also claims that rival firms have offered to buy Lotus and its debts, one of which is said to be the Volkswagen Group, though so far no official announcement has been made.

The plans may not be scrapped after all

 

http://www.motorauthority.com/news/1077973...-five-year-plan

 

All plans are now officially scrapped as of the news released this morning, besides the Esprit, which is truthfully the only one any of us cared about.

 

However they did also say today that the Esprit will be using a third party engine and tranny and that plans for internally developed pieces are officially axed...which kind of sucks but of course was expected to some extent as little Lotus simply couldn't make that much clean-sheet work happen with their limited staff/budget.

 

So it's a bit of good news/bad news, but hopefully the Esprit arrives on the market in the next 24 months, and hopefully it's a winner.