Jeopardy over Lotus launch plans

Following Lotus’ grand growth plans back at the 2010 Paris Motor Show, one of the automotive world’s most inspirational and single-minded manufacturers looked set to return to glory.

When ex-Ferrari branding boss, Dany Bahar was then employed as CEO, shortly followed by former Ferrari designer Donato Coco to help style Lotus’ latest efforts, the plans really took on some weight.

However, it now looks that Bahar’s hard work could be in serious jeopardy as the Norfolk manufacturer’s parent company, Malaysian state-owned firm Proton, is being put up for sale.

The value of Proton stock climbed five per cent in December 2011 after rumours the centrally owned company could be flogged to a private buyer.

If a buyer was to materialise, it’s thought that the new owners would divest the Malaysian manufacturer’s 65 per cent stake in Lotus, releasing capital to secure the future of Proton’s Malaysian operation.

The automaker has recorded a 76 per cent drop in profits in its home market over the last quarter, with the company’s market share dropping considerably over the last decade – in 2002 Proton held a dominant 60 per cent market share in Malaysia dropping to 30 per cent over a three year period to 2005.

Selling its holding in Lotus Group International would spell the end of the funding Lotus has been relying on to develop the firm’s all-new five-car model line-up, alongside an internally designed 4.8-litre V8 earmarked to propel the luxury Eterne and Esprit supercar.

It’s thought the British sportscar manufacturer needs £500 million to realise its ambitious expansion plans but the company itself is only valued at an estimated £200 million – providing Bahar’s masterplan is successful.

So, what is the future for Lotus? It’s rumoured Chinese vehicle manufacturer and existing VW partner firm, Shanghai Automotive, and venture capital firm Genii Capital have been in talks with the Malaysian government about launching a bid for the Lotus brand.

Hopefully though, the Lotus-Proton fiscal situation is rectified soon as we want to see five stunning new Lotus’ taking on the established supercar players such as Porsche, Ferrari and Lamborghini.

We just hope that the automotive industry doesn’t have another Saab saga developing and that Lotus’ ambitious expansion goals don’t destroy the firm.