Malaysia's Proton Holdings Bhd. took control of Lotus in 1996. They're expecting the brand to finally break even financially, at the earliest, in 2014. Famed racing name or not, any way you slice it, that is a long time for a holding company to keep a product without seeing a profit. And now that Proton could be sold off from state sponsorship (it is a government linked company) investors are calling on Proton to sell off Lotus.
"It will make sense for them to sell it. Proton and Lotus are not a good fit. They are in different market segments, both in terms of geography and product," said Gan Eng Peng, head of equities at Hwang DBS Investment Management.
Earlier this month, Shanghai Automotive was rumored to be interested in Lotus, but the rumors were shot down. The same thing happened two months earlier but with Luxembourg-based Genii Capital. You'll know Genii capital as the owner of Lotus Renault F1.
Lotus CEO Danny Bahar seems to accept that a sale is likely, "The only thing we can do is show the current owners, or the new owners, that we are absolutely in line with the business plan that we have presented. Without funding support and the guarantees given by the Proton group, we would not survive, end of story."
throwback says:
10:43 AM, 12/29/11
I guess the 5 Lotus models from early in the year was the sales pitch.
roar02ram says:
12:09 PM, 12/29/11
I always thought Lotus and Aston Martin would make a good pair. Lotus would take the hard-edged racer side and Aston the GT role.
boobylortez says:
02:38 PM, 12/29/11
Is that Billy Baldwin over there?
ed124c says:
02:43 PM, 12/29/11
Sure looks like him.
"My God, it's full of stars!"
addicted2sp33d says:
03:02 PM, 12/29/11
Sell Lotus to me and I'll make some changes. We don't need any of those dudes, they're not even paying attention to what's going-on.
The one in the white dress who is actually looking at the camera can stay.
Billy Baldwin can stay too. We'll use him in a commercial, so he can have some productive work since Backdraft.
brn says:
04:33 PM, 12/29/11
Lotus has spent a lot of time and resources on R&D and growing into different market segments. That costs money. Times are hard right now. Just because Lotus isn't turning a profit, doesn't mean there isn't a huge potential. I feel Lotus has done a great job of positioning itself.
explorerx4 says:
06:49 PM, 12/29/11
Sure looks like Bob Lutz third from the right.
boobylortez says:
06:58 AM, 12/30/11
That sneaky guy is definitely about to assassinate Bob Lutz!
kain77 says:
07:06 AM, 12/30/11
Does the blonde come with Lotus?
viss1 says:
07:06 AM, 12/30/11
I'm disappointed that there are multiple mentions of Billy Baldwin but not yet any mention of Paul Stanley.
stovt001 says:
09:53 AM, 12/30/11
Wait, you mean Danny Bahar's plan to increase the weight of their cars just for the sake of increasing weight (look up the interview, he actually said that) in complete contrast to the brand's identity, and abandoning a niche they had all to themselves while entering what is probably the most overcrowded market segment isn't working out? I'm shocked. There should be a special automotive prison for despicable men like Danny.
explorerx4 says:
03:33 PM, 12/30/11
When I was in high school I looked pretty much like the guy to right of the girl.
Wore pants that were way too long, just like him too.
'Don't worry you'll grow into them.'
moparbad says:
07:05 PM, 12/31/11
Lotus would possibly fit well with Mahindra. Mahindra is globalizing and the engineering would be valuable as they go forward.
Would be great to see Lotus operate independently. Shame that need for scale is destroying small automotive gems.
litewerk says:
01:46 PM, 01/ 2/12
My thinking and feeling about this is very much in line with what brn said.
mind_ride says:
03:57 PM, 02/ 1/12
Never thought I'd say this, but Paul Stanley looks good in a suit and tie.