RE: Doubt cast over Lotus' future
Thursday 12th October 2006
The road ahead is clear...Doubt has been cast this week over Malaysian car company Proton's continuing ownership of Lotus, although Proton denies there's a problem.
Doubt cast over Lotus' future
But Proton insists it will stick by Lotus
The road ahead is clear...
Quoting a "well-placed industry source", a short news piece in Autocar moots the idea that Lotus may be sold in the face of cashflow problems at Proton, which the story predicts will worsen in the face of increased competition at home in Malaysia and abroad.
Lotus PR chief Alastair Florance threw cold water on the idea, pointing out that Proton bosses have recently reiterated their support for the Norfolk carmaker.
"Proton Holdings Bhd will not sell its unit Lotus even if things get tough", Proton's group managing director Syed Zainal Abidin Syed Mohamed Tahir is quoted to have said by financial publication Interactive Investor (see link below).
"We will make sure that Lotus will work. We must ensure Lotus is a success; there is no other way," Syed said. He also said that Proton will have to make radical changes soon in Lotus. One of the first priority will be "rightsizing" the company, he said.
So Lotus appears safe for now. As long as the money lasts.
Discussion
This just sounds like someone speculating. Proton looks like it has a bit of a fight on its hands in its home market and all of a sudden its doomed and will have to sell of its crown jewel.
I do wonder about 'rightsizing'. What does it mean and surely Proton have had Lotus long enough to sort that out?
I do wonder about 'rightsizing'. What does it mean and surely Proton have had Lotus long enough to sort that out?
Hhmmm, interesting. I wonder what value they would put on Lotus at the moment. One things for sure, Ford won't buy them, so that would leave Toyota as the most obvious choice of suitors.
At the end of the day, its probably just a load of cr@p, someone overheard something from someone or its a mud throwing exercise by a competitor.
At the end of the day, its probably just a load of cr@p, someone overheard something from someone or its a mud throwing exercise by a competitor.
MrKipling43 said:
I like the idea of Toyota buying them... just imagine the Lotus-Toyota F1 Team. It would give Toyota a (proper) reason to be in Formula 1 and will give Lotus the worldwide publicity and kudos it needs at the moment. Unfortunately, not everyone knows its illustrious history.
Actually sounds like a really good idea! I like that one!
So really the story is that Proton are facing stiffer competition/market downturn, therefore they may divest at worst and 'right-size' at best it's subsiduaries - incl. Lotus..
Lotus is obviously not coming up with the goods in terms of expected sales, hence two hundred jobs go, it looks like they have a 'diversify into the niche markets' strategy so they use flexible chassis and swap engines/power/comfort/size/image/price into a variety of small volume combinations which will appeal to a wider variety of people. This means they don't have to compromise one model into being all-things-to-all-men but can say here's a model for someone who likes raw speed and handling, here's a model that handles really well but is comfy, here's a model that goes like a go-kart that you can take the top off....and in the future....here's a model which is a 'supercar' rival but with handling. They are actively looking into the future with biofuel and involvement in electric cars which can't be a bad thing when you look at what they've come up with.
The secret is retaining the Lotus 'DNA', as that is what an enthusiast buys into I think, it's what makes the cars a little different from the crowd and it certainly makes them a pleasure to drive.
I think this is a good strategy, if it is one, but all I'd say is 'don't forget Chapman...'
Lotus is obviously not coming up with the goods in terms of expected sales, hence two hundred jobs go, it looks like they have a 'diversify into the niche markets' strategy so they use flexible chassis and swap engines/power/comfort/size/image/price into a variety of small volume combinations which will appeal to a wider variety of people. This means they don't have to compromise one model into being all-things-to-all-men but can say here's a model for someone who likes raw speed and handling, here's a model that handles really well but is comfy, here's a model that goes like a go-kart that you can take the top off....and in the future....here's a model which is a 'supercar' rival but with handling. They are actively looking into the future with biofuel and involvement in electric cars which can't be a bad thing when you look at what they've come up with.
The secret is retaining the Lotus 'DNA', as that is what an enthusiast buys into I think, it's what makes the cars a little different from the crowd and it certainly makes them a pleasure to drive.
I think this is a good strategy, if it is one, but all I'd say is 'don't forget Chapman...'
I am a recruiter and "Rightsizing" just says to me streamlining, which means redundancies and cutbacks. I sincerely hope not.
As for Proton...i wouldn't trust those buggers as far as i could throw them. I have dealt with a lot of Japanese and Korean electronics companies over the years and they are so unpredictable. They say one thing but really mean another. Don't be too surprised if Lotus find themselves on the market in the not to distant future. If they do i hope somebody with enough private cash to sink a battleship would buy Lotus and throw enough of it at them to really let them have a free hand about what they design and build without the contraints of big corporation control.
As for Proton...i wouldn't trust those buggers as far as i could throw them. I have dealt with a lot of Japanese and Korean electronics companies over the years and they are so unpredictable. They say one thing but really mean another. Don't be too surprised if Lotus find themselves on the market in the not to distant future. If they do i hope somebody with enough private cash to sink a battleship would buy Lotus and throw enough of it at them to really let them have a free hand about what they design and build without the contraints of big corporation control.
Edited by scoobiewrx on Thursday 12th October 17:20
A lot of contradiction in that report. Everything is fine and Proton have complete support for Lotus - then Lotus must undergo a radical change and be rightsized. The radical change part scares me.
Frankly, it might be fine for Proton's management and shareholders (do they have shareholders?), but if they're hobbling Lotus just when the company is attempting to bring at least two completely new models to market, things look pretty poor for the car owners.
I'd really like to see those two models reach the market, and have enough design and engineering clout behind them to compete well in their segments. If Proton force Lotus to pull their punches in this very competitive market, the new Esprit will be very disappointing.
There again, the Elise was produced against a very difficult background - necessity is the mother of invention and all that.
Frankly, it might be fine for Proton's management and shareholders (do they have shareholders?), but if they're hobbling Lotus just when the company is attempting to bring at least two completely new models to market, things look pretty poor for the car owners.
I'd really like to see those two models reach the market, and have enough design and engineering clout behind them to compete well in their segments. If Proton force Lotus to pull their punches in this very competitive market, the new Esprit will be very disappointing.
There again, the Elise was produced against a very difficult background - necessity is the mother of invention and all that.
Tuna said:
...There again, the Elise was produced against a very difficult background - necessity is the mother of invention and all that.
True enough, but although the financial situation was a bit desperate at the time, at least Artioli was a genuine enthusiast who seemed to understand Lotus core values.
From the rest of their product range, it's difficult to see Proton as anything other than a manufacturer of automotive 'white goods', so whether they fully understand the Lotus heritage of niche, innovative cars aimed at technological purists remains to be seen.
Still...seems like Situation Normal, down at Hethel - they have a long tradition of blundering from one crisis to the next, but they always seem to make it through!
Rightsizing == cutbacks (at least in some areas), without exception. If you're going to upsize a company you announce it and bask in the positive publicity of a company in a growth period. You'd not waste that marketing opportunity with a negative word like "rightsizing". The question is where are the cutbacks going to be, and will they be compensated for by additional investment elsewhere in the company...
Well according to WikiPedia, their pick market share of over 60 percent in Malaysia (2002) was reduced to barely 30 percent by 2005 and is expected to reduce further in 2008 when AFTA (ASEAN Free Trade Area) mandates reduce import tariffs to a maximum of 5%. Therefore Korean and Japanese invasions will start by that time... (Three East Asian nations of Korea, Japan, and China isn't part of ASEAN but somehow their are consider ASEAN Plus Three. Therefore they can take advantage of FTA even though they are not member states.) Half of their market share is gone in 3 years, which translate into less money. I'm guessing that Proton will sell Lotus or at least rightsizing (downsizing I presume?) Oh Plus didn't Proton bought MV Augusta recently? That's gotta hurt...
MrKipling43 said:
I like the idea of Toyota buying them... just imagine the Lotus-Toyota F1 Team. It would give Toyota a (proper) reason to be in Formula 1 and will give Lotus the worldwide publicity and kudos it needs at the moment. Unfortunately, not everyone knows its illustrious history.
COULD NOT AGREE MORE!!!! what a great day it would be to see a Lotus back in the game. Personally, I'd like to see them get into Indy and sports cars as well. Toyota has been in all of them and Toyota is certainly not floundering with cash problems. And... seem to know how to get cars to the big market (USA).
Drive topless!!!
Cameron
What would be in it for Toyota any way? Toyota had a go at making small/medium sports cars with the MR-S/Supra (and MR2 before that) but it doesn’t seem to be able to make ends meet in the market with that model. Of course I expect an MR-S replacement at some stage (probably more like the MR2 again) and the next Supra is comming soon.
I don’t think “heritage” means much any more, I’ve seen many motoring manufacturers with heritage go under. The product you produce and price it sells at a far more important than how sucessful your racing cars where in the 1960’s.
Having said that I always thought the Espirit was a great car, a kind of budget supercar which I have no doubt could be very succesful if they can:
1. Make it really reliable, like daily driver reliable.
2. Make it come in at a reasonable price.
Basically make something to rival a 911 instead of something that needs to be hand built by the dozen and can only be used on weekends. Doesn’t even need to be powerful or fast…
I don’t think “heritage” means much any more, I’ve seen many motoring manufacturers with heritage go under. The product you produce and price it sells at a far more important than how sucessful your racing cars where in the 1960’s.
Having said that I always thought the Espirit was a great car, a kind of budget supercar which I have no doubt could be very succesful if they can:
1. Make it really reliable, like daily driver reliable.
2. Make it come in at a reasonable price.
Basically make something to rival a 911 instead of something that needs to be hand built by the dozen and can only be used on weekends. Doesn’t even need to be powerful or fast…
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