RE: Lotus plans to stem losses
Monday 3rd April 2006
Can the Europa rescue Lotus?Reports suggest that Lotus Group, parent company for Lotus Cars, lost £7.4 million on sales of £162.6m in 2005.
Lotus plans to stem losses
Big revenue hole to be filled by new Europa
Can the Europa rescue Lotus?
Lotus does have plans to recoup the losses however, while Malaysian parent company Proton has reaffirmed its support for the Hethel-based sportscar maker, suggesting that the long-term outlook for the iconic company remains rosy.
To plug its revenue hole, Lotus will be assembling more niche vehicles for third party car makers, probably based on the APX concept first shown at this year's Geneva Motor Show, and will increase its revenue from the engineering services division from its current 25 per cent of the total to one-third.
Additionally, Lotus' revenues should get a boost from the launch of the new Europa, which starts production in July.
Here's hoping. We cannot lose Lotus, one of the UK's prime examples of outstanding British automotive engineering and talent.
Discussion
Mmmm, yes, but will anyone actually buy the new Europa? To be honest I don't think its that awful, and I quite like the phrase 'business-class by Lotus' but with a fussy side profile and gob like that, sales expectations would have to be conservative... They really need to lob a V6 in it, but that wouldn't fit with its nomenclature - one problem with retro I guess.
Ali.
Ali.
I have to agree about the styling, it's just not going to sell on its looks. The Elise looked pretty cool to start with but the S2s really took off due in no small part to the more aggressive styling.
If Lotus are pushing for the Europa to plug a sales gap, I'm afraid for them.
The test will come when the new Esprit is launched. That's Lotus' big gun and it's such an Icon that they can't afford to get it wrong. Americans don't know much about Lotuses but they at least know of the Esprit!
Europa, Hmm, by the noises a lot of people have made on this websites forums and others, it seems they might have dropped a clanger with its look.
A
If Lotus are pushing for the Europa to plug a sales gap, I'm afraid for them.
The test will come when the new Esprit is launched. That's Lotus' big gun and it's such an Icon that they can't afford to get it wrong. Americans don't know much about Lotuses but they at least know of the Esprit!
Europa, Hmm, by the noises a lot of people have made on this websites forums and others, it seems they might have dropped a clanger with its look.
A
Frankly, I don't know what people expected Lotus would do with the Europa styling. They have stated they're aiming the car at the Audi-TT area of the market, and as such it's not going to have wild styling or massively high performance. It'll have Lotus handling, preformance to match most Elises and be rather more practical, which is the one thing that puts most people off buying the Elise.
It seems to me that most people who're complaining about the Europa wanted a different kind of car. As these are people on a hardcore car website, they're probably not the target market for the Europa - and will have already got an Elise or hope to get an Esprit if they're going to get a Lotus at all.
Whether it's the best business strategy we've yet to find out, but I'll say it again - this is not the car to upgrade from your Elise, it's a car for your friend who tells you that the Elise is stupid because it's impractical.
It seems to me that most people who're complaining about the Europa wanted a different kind of car. As these are people on a hardcore car website, they're probably not the target market for the Europa - and will have already got an Elise or hope to get an Esprit if they're going to get a Lotus at all.
Whether it's the best business strategy we've yet to find out, but I'll say it again - this is not the car to upgrade from your Elise, it's a car for your friend who tells you that the Elise is stupid because it's impractical.
dickster said:
For me I wish they'd used a different name for the Europa. I expected it to have a retro look to it inline with the original.
It would stand on it's own otherwise I reckon.
Also, how the hell do they lose money? Surely they must be selling more cars than ever now?
The Lotus group must do a regrouping? they've got to BIG on some things...they sold a lot of Elise and Exige and also will sell a lot Europas...but they wanted to much other things anf got to BIG? to many people to pay who don't make the cars? so better regroup then making the cars more expensive
Stay small and exclusief, don't get to big there are to many carmakers to big allready you can't fight them, ok you can fight GM with their big losses
Difficult to translate all in my poor English
GTRene
Shakman said:
Lotus have no hope with the Europa. Its dog-s*it ugly in my opinion. They should have stuck with the M250 design ... now there was a car that was dying to be bought by the bucket loads.
totally agree....also have you seen the projected price.....seem to remember 45k was bandied about....ouch !
The most important part for me in this news is that Lotus are looking into building niche vehicles for third parties. This wy the can overcome the over capacity problem they are currently facing (money loser). Maybe with more thrid party involvment they will increase productquality (less rework to correct production errors), meaning less losses.
A new product like the Europa can create cash too (since developmentcosts were not too high). Beeing a nice player though I wouldn't bet my money on too many new products.
Nico
A new product like the Europa can create cash too (since developmentcosts were not too high). Beeing a nice player though I wouldn't bet my money on too many new products.
Nico
I really hope they aren't relying too much on the Europa.
Just can't imagine who they are aiming it at.
People who don't want a Lotus for the track, want one that's sexy.
This is very obviuosly neither.
As for more practical than the Elise, all the pictures I've seen are practically identical inside.
Maybe a tiny bit more boot space, and a few inches not so low, well WOW!!!
That'll really attract the Audi, BMW crowd I don't think.
Looks like a pig-ugly designed by comittee Japanese job interbred with a Vauxhall 220 spare parts bin.
Absolutely no chance of selling in any amount whatsoever.
And as for the projected price, what a joke. You can get a new Z4 for just over £22K, and a 350Z for £26K. Compare them.
One of the main reasons you'd buy an Elise or Exige over the competition is that they're just so damn sexy. They just look beautiful, stunning even. Take away the looks and just be brutally honest, how many people would still pay all that dosh for a four-pot plastic car, no matter how well it handles.
Do Lotus ever do any market research? It could be an idea.
>> Edited by guitarman on Monday 3rd April 22:05
Just can't imagine who they are aiming it at.
People who don't want a Lotus for the track, want one that's sexy.
This is very obviuosly neither.
As for more practical than the Elise, all the pictures I've seen are practically identical inside.
Maybe a tiny bit more boot space, and a few inches not so low, well WOW!!!
That'll really attract the Audi, BMW crowd I don't think.
Looks like a pig-ugly designed by comittee Japanese job interbred with a Vauxhall 220 spare parts bin.
Absolutely no chance of selling in any amount whatsoever.
And as for the projected price, what a joke. You can get a new Z4 for just over £22K, and a 350Z for £26K. Compare them.
One of the main reasons you'd buy an Elise or Exige over the competition is that they're just so damn sexy. They just look beautiful, stunning even. Take away the looks and just be brutally honest, how many people would still pay all that dosh for a four-pot plastic car, no matter how well it handles.
Do Lotus ever do any market research? It could be an idea.
>> Edited by guitarman on Monday 3rd April 22:05
Shakman said:
Lotus have no hope with the Europa. Its dog-s*it ugly in my opinion. They should have stuck with the M250 design ... now there was a car that was dying to be bought by the bucket loads.
Absolutely. I can see the Europa being the end of Lotus. No matter how well it might be to drive no one will pay heaps of cash to buy a car that looks like sh1t (unless it's a BMW)
Well someone has to be the dissenting voice, so it may as well be me. I have to say I disagree with you all.
I personally like the styling and I think this car will sell very strongly - it's a proven chassis, an engine which is eminently tuneable for little money, and a good all-round package.
I believe the final car will address some of the criticisms that were levelled at it by many Lotus lovers when the early press-shots came out, but I think in the flesh it will be very very appealing.
Lotus set out to make a 'softer' more 'useable' coupe with this variant, and by the looks of it I think they've made a good start without blowing the budget or going overtly OTT on it.
If you dismiss it on looks alone you're missing the point of a Lotus completely. It will handle exceptionally well, and when Lotus Motorsport get their hands on it, add different suspension and wheels, I fully expect to hear some people change their minds.
I will wait until I've seen a production car, and driven it, to make a final decision. To write it off on the basis of a few press shots is foolhardy at best.
Where did they lose money? Try getting the Elise ready and acceptable for the US market. It cost huge amounts to do that.
As for plugging a sales gap - what sales gap? It's a new niche which is hitherto unexploited by Lotus, and compared to a TT this car looks like a bargain. It will piss all over it.
The car that will make Lotus the most cash in the next 12 months will be the Exige S. That thing will sell shitloads. The best car they've put out in years by a country mile.
>> Edited by S works on Tuesday 4th April 01:01
I personally like the styling and I think this car will sell very strongly - it's a proven chassis, an engine which is eminently tuneable for little money, and a good all-round package.
I believe the final car will address some of the criticisms that were levelled at it by many Lotus lovers when the early press-shots came out, but I think in the flesh it will be very very appealing.
Lotus set out to make a 'softer' more 'useable' coupe with this variant, and by the looks of it I think they've made a good start without blowing the budget or going overtly OTT on it.
If you dismiss it on looks alone you're missing the point of a Lotus completely. It will handle exceptionally well, and when Lotus Motorsport get their hands on it, add different suspension and wheels, I fully expect to hear some people change their minds.
I will wait until I've seen a production car, and driven it, to make a final decision. To write it off on the basis of a few press shots is foolhardy at best.
Where did they lose money? Try getting the Elise ready and acceptable for the US market. It cost huge amounts to do that.
As for plugging a sales gap - what sales gap? It's a new niche which is hitherto unexploited by Lotus, and compared to a TT this car looks like a bargain. It will piss all over it.
The car that will make Lotus the most cash in the next 12 months will be the Exige S. That thing will sell shitloads. The best car they've put out in years by a country mile.
>> Edited by S works on Tuesday 4th April 01:01
M100 said:
Lotus have no hope with the Europa. Its dog-s*it ugly in my opinion. They should have stuck with the M250 design ... now there was a car that was dying to be bought by the bucket loads.
Absolutely. I can see the Europa being the end of Lotus. No matter how well it might be to drive no one will pay heaps of cash to buy a car that looks like sh1t (unless it's a BMW)
I'm told the M250 will be evident in the upcoming Esprit.
As for this car being the end for Lotus - they've planned 400 units. How is that going to bring down the company? You're not talking sense mate.
huge said:
Lotus have no hope with the Europa. Its dog-s*it ugly in my opinion. They should have stuck with the M250 design ... now there was a car that was dying to be bought by the bucket loads.
totally agree....also have you seen the projected price.....seem to remember 45k was bandied about....ouch !
That's bollox too. Base price will be around £33k if I remember right.
Had a long chat with my local dealer the other week - he is really looking forward to the Europa. He had a very succesful '05 selling 20% more Elise/Exige than forecast. He also lost just as many sales from punters who felt both were to extreme. Along comes the Europa and he now has massive interest from all those who walked away last year. He reckons he has deposits and letters of intent for 25% more than the cars he has been allocated from the July launch. With th eusual 20% drop out, he says thats his target for 06/07 done already. He is one happy bunny. As has been pointed out, the Europa is not aimed at the type of owner who frequents this forum and others like it. Accept its a different niche, hope it does well and wait for the new Esprit.
Oh, he also invited me aloing to a confidential customer clinic on the new Esprit, in May. Now that I am looking forward to.
Oh, he also invited me aloing to a confidential customer clinic on the new Esprit, in May. Now that I am looking forward to.
hedgerley said:
Had a long chat with my local dealer the other week - he is really looking forward to the Europa. He had a very succesful '05 selling 20% more Elise/Exige than forecast. He also lost just as many sales from punters who felt both were to extreme. Along comes the Europa and he now has massive interest from all those who walked away last year. He reckons he has deposits and letters of intent for 25% more than the cars he has been allocated from the July launch. With th eusual 20% drop out, he says thats his target for 06/07 done already. He is one happy bunny. As has been pointed out, the Europa is not aimed at the type of owner who frequents this forum and others like it. Accept its a different niche, hope it does well and wait for the new Esprit.
Sense at last.
hedgerley said:
Oh, he also invited me aloing to a confidential customer clinic on the new Esprit, in May. Now that I am looking forward to.
I'd love to come along to something like that. It's a pity our local dealer went titsup or I'd be hassling them right now.
I didn't like the Europa one bit looking at pics, but when I saw a real one, it suddenly made sense and I quite like it. If you're a fan of the Elise then this car is not for you - it wasn't meant to be, what's the point of stealing sales from one model to another. It's a commuter Elise!
Obviously development costs are a factor, but the one problem with the Europa is that it only has two seats. Doesn't bother me, but apparently a lot of dealers have ex- Elise customers who need a baby seat in the back as they've got older. Similarly, tempting TT and Celica customers away probably needs that extra practicality.
If you expect the Esprit to look like the M250, think again!
Obviously development costs are a factor, but the one problem with the Europa is that it only has two seats. Doesn't bother me, but apparently a lot of dealers have ex- Elise customers who need a baby seat in the back as they've got older. Similarly, tempting TT and Celica customers away probably needs that extra practicality.
If you expect the Esprit to look like the M250, think again!
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