Any news on Group Lotus financial position?

[andyps]

Following a conversation I had with someone over the weekend I was wondering if anyone had any insight into the financial situation at Group Lotus. His company had been doing a lot of work on a project for them but have stopped it due to lack of payment forthcoming. The implication is that they couldn't afford to pay the bill which is concerning in relation to any longer term future for Lotus. I don't really want to say any more about the source as that would be unfair and it may not fully reflect the situation, but are there any other reports relating to lack of finance?

[GKP]

They've always been slow payers. I wouldn't read anything into it. Bahar has got millions to play with.

[andyps]

Thanks GKP. The implication was more that they couldn't pay the bill than were late paying it - worked stopped on the project completely and is not planned to start again despite a lot of time having been spent on it so far.

[scotal]

http://uk.news.yahoo.com/lotus-cars-set-axe-99-job...

Your mate probably won't want to read that then.

[GKP]

Losing 100 people from a very quiet production line isn't entirely unexpected.

[andyps]

The article says that it is back-office staff rather than production line. At a time when they are supposed to be developing 5 new cars and a new range of engines and apparently have all the funding in place for that it seems surprising to me. Unless of course, the development work is all being carried out by Lotus Engineering which it says will not be affected.

I do want to add that I would love to see Lotus prosper and really hope they do, just not sure that is the way it is heading at the moment and was interested to see if anyone knew more.

[RonnieP]

GKP said:

Losing 100 people from a very quiet production line isn't entirely unexpected.

Read your Tuesday post please, another Lotus owner bedazzled by Baharst

The abyss beckons, is there a violinist here to play as the ship slowly sinks below the waves

Will be interesting to see whether more of the 'old guard' are in today's departees

[A Scotsman]

Also in the Guardian

http://www.guardian.co.uk/business/2011/jun/02/lot...

[wildman0609]

they HAVE secured the £400m required to design, develop and produce at least the esprit, then some of the others will follow.

the other interesting thing i heard is that they are now making a loss on each new evora and a lot of work is going in to a face lift version which should be much better.

[skwdenyer]

This could get interesting. Another story doing the rounds says that the Renault F1 team is short of cash and is desperate for Group Lotus to advance it some of the not-yet-due sponsorship money...

[andyps]

Back to my original comment, I had clarification that it was actually Lotus who pulled the plug on the project stating that they could no longer afford it.

[Redlake27]

Renault F1 team having a funding crisis. Are Group Lotus not paying the bills? I've noticed that in their press releases they are not being as overtly Lotus-Renault as they were before, and are just Renault F1.


http://news.bbc.co.uk/sport1/hi/formula_one/146240...

The BBC article confirms Senna is bringing millions to replace a salaried driver.

Bahar's Motorsport dream not turning into reality? Will we have just one Lotus team again soon?

I tended to side with Group Lotus during the Lotus v Lotus F1 row, but I'm seeing Fernandes as the one who is delivering, not Bahar.

If they can't pay their F1 sponsorship fee, it doesn't bode well for 5 new road cars. My prediction is that within three years Fernandes will have bought Group Lotus for a ringgit from Proton, and the Elise, Evora and Seven will form the future of Lotus once again.

[Thorburn]

Redlake27 said:

Renault F1 team having a funding crisis. Are Group Lotus not paying the bills? I've noticed that in their press releases they are not being as overtly Lotus-Renault as they were before, and are just Renault F1.

I don't think Group Lotus are 'paying the bills' for the F1 team, the team still belongs to Genii with Lotus as the title sponsor so what they have to pay each year will be a fixed amount to get the logos on the car and do the associated marketing.

Renault F1 has been rumoured to have financial issues dating back to last year or even earlier, so I wouldn't blame Group Lotus for this.

http://joesaward.wordpress.com/2010/10/04/renaults...

[C43]

Speaking to insiders Lotus cars own some of Lotus Renault F1 (yes I thought they were sponsors as well) and the only reason they are going is because Group Lotus are paying their bills.

C43

[skwdenyer]

C43 said:

Speaking to insiders Lotus cars own some of Lotus Renault F1 (yes I thought they were sponsors as well) and the only reason they are going is because Group Lotus are paying their bills.

C43

I thought that the share transfer hadn't actually happened yet, but rather Group had an option to buy a stake in the future. Is that not correct?

[C43]

My contact is close to the top but you never know for sure unless you see the paperwork yourself..

[Redlake27]

The initial announcement was for Group Lotus to buy into Renault gradually, so it wouldn't be a surprise if they have already done some of this.

Joe Sward's latest link suggests that Fernandes has been persuauded (and sweetened by the Malaysian Govt selling him an airline) to drop the Lotus branding from 2012. That'll make things clearer for fans, as I've always thought that the real Lotus was the Group....even though I think the real Lotus in spirit is more the Fernandes group than Bahar.

I've owned 3 Lotus, and have been saving for an Evora. But recent developments have turned me away from Lotus. The signing of Swiss Beatz as VP Design is really desperate....

[andyps]

Redlake27 said:

The signing of Swiss Beatz as VP Design is really desperate....

Totally illogical and my thought was that it is the final nail in the coffin, certainly in terms of my interest in the cars currently in development.

[AlistairF]

It's a shame that people are losing their jobs but Lotus has been neither making money or really hitting the mark on the cars either. In the 70's the model range outperformed all of the mainstream cars because of low weight and high power outputs which pitched them close to supercar performance. I have sold my 111R recently because it simply was not fast enough on the road unless you drive the balls off it and the driving position was not quite right for me.
Lotus need to deliver cars that deliver what their customers want. I want a soft top car that out-punch turbo diesels and hot hatches and has a tad more adjustment in the seat or pedals. I am a big Lotus fan from the 70's but have had a frustrated love affair with my Elises. If they had addressed these issues 10 years ago with an SC more competitively priced and continued to develop them they would have engaged their core market more effectively and gradually increased it, making more money and able to invest in new models.
The new regime seemed intent on moving away from the niche enthusiast to do battle with Porsche, Ferrari and Aston. Maybe the signals to revamp the Exige is a good sign but it will most certainly be expensive.
I know it is heresy but I have switched to a Porsche and each journey is just as great an occasion as my former Lotus, and although it feels quicker on the road more of the time you feel somewhat invisible as it lacks the presence of the Lotus... but none of the niggles and a fantastic driving position.
I'd love to be Lotus driver again but their product need to be better in order to sell and only then will they have a chance of being profitable.