Under China’s Geely, sports car maker Lotus looks to add to its pedigree and enter new markets
Chinese carmaker’s deep pockets and hands-off management of acquisitions, combined with British marque’s engineering excellence, point to a rosy, and possibly electric, future for the car company
An assembly hall sits rusting on a 22-hectare factory complex in eastern England, surrounded by an expanse of green farmland. The forlorn structure is a reminder of the latest failed attempt to revive Lotus Cars, a specialist sports car maker and engineering powerhouse.
In its heyday, Lotus was revered for lightweight racers favoured by James Bond and Mario Andretti. The company’s engineering talent was so well respected it developed a successful consulting firm, with clients including General Motors (GM), Aston Martin and Tesla.
But consumer tastes changed. When sports cars gave way to SUVs, Lotus suffered.
Under an ambitious plan hatched in 2009, Lotus started building a new assembly hall in anticipation of producing an expanded line-up of five new models. But the financial crisis and a global recession got in the way, and Lotus’ foreign bankroller didn’t want to plough any more cash into the project. No new cars appeared, and sales continued to plunge. Work on the hall stopped dead.
In a sign of how bad things had become, Lotus’ British network of dealers sold an average of just 11 cars per month in 2012.
Now there are signs that its fortunes are changing. Over the past three years, Lotus has been selling closer to 30 cars a month in its home market. Revenue is up, thanks to a combination of cost-cutting and sales of higher-priced, limited edition models.