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Featured British sports car maker Lotus bought by China's Geely

Discussion in 'Lotus' started by Cashmere, May 24, 2017.

  1. Cashmere

    Cashmere Well-Known Member

    Lotus, the British sports car maker, is being bought by China's Geely.

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    The purchase is part of a deal by Geely to buy a 49.9% stake in Malaysian carmaker Proton, which owns Lotus.

    Geely, which also owns the London Taxi Company and Sweden's Volvo Car Group, will take a 51% stake in Lotus.

    Jean-Marc Gales, who became Lotus chief executive in 2014, has been trying to return the Norwich-based company to consistent profit after two decades in the red.

    It was effectively locked out of United States in 2015 when its airbags failed to comply with new car safety regulations, but Lotus returned to the American market last summer.

    While the Lotus car company has not been involved in Formula 1 racing since the 1990s it runs an engineering consultancy selling sports car technology.

    Geely is expected to use its research in composite materials and lightweight technology to help it comply with increasingly demanding emission regulations in China.

    Proton decline
    The stake in Proton is expected to give Geely access to the south-east Asian market, where it wants to use Volvo technologies to reclaim market share.

    James Chao, of consultancy IHS Markit Automotive, said: "Geely has validated the model of using their Volvo technology platform to create good products. That should be the same for Proton."

    Proton also gives Geely access to right-hand-drive markets around the world, including Malaysia, the UK, India and Australia.

    Proton was founded in 1983 by former Malaysian prime minister Mahathir Mohamad, but its fortunes have dwindled from national champion to being a minor player even in its own domestic market.

    It will continue to be majority owned by the Malaysian DRB-HICOM group.

    The Malaysian government gave Proton 1.5bn ringgit ($364m) in financial aid last year on condition that it find a foreign partner.

    Malaysia's second finance minister, Johari Abdul Ghani, said: "Proton will always remain a national car and a source of pride. Our very own much-loved brand now has a real chance in making a comeback."

    Geely aims to produce three million cars by 2020 across all its operations.

    Link: British sports car maker Lotus bought by China's Geely - BBC News
     
    • Informative Informative x 5
    • Cashmere

      Cashmere Well-Known Member

      I think this deal has the potential to be good for Lotus if Geely can replicate what they did with Volvo.

      Pump more resources into Lotus and also get the design and engine team from Volvo & Lotus to collaborate - it could lead to something significantly more exciting than what Lotus currently offers.
       
      Last edited: May 24, 2017
      • Agree Agree x 5
      • klier

        klier Member

        Top Poster Of Month

        1000 hp electric Lotus hypercar incoming.

        I'll get back to this in 5 years.
         
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        • hoffmeister_fan

          hoffmeister_fan Well-Known Member

          If they can manage to make a true lightweight and entertaining electric sportscar, they might find the niche they've been longing for. And with Geely's backing and Volvo's know-how, it has less of a chance of being vaporware compared to their other Chinese couterparts.
           
        • Merc1

          Merc1 Well-Known Member Contributing Member


          Exactly. Lotus just needs the investment. This is actually really good news.

          M
           
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          • Giannis

            Giannis Global Moderator / Editor Staff Member

            Either this, or a new Lotus model with 12 airbags, 5 different active safety systems and the most comfortable seats in its class.

            :D
             
            • Funny Funny x 2
            • SCOTT27

              SCOTT27 Well-Known Member Contributing Member

              I wonder if they will again look at that expansion plan they had previously.
              What is interesting is potentially a Lotus engineered Volvo Sporty Coupe could be a distinct possibility.
               
            • speed_kills

              speed_kills Well-Known Member

              Great news. It's better than living permanently in a limbo. Let's see if they can manage a company like Lotus.
               
              • Agree Agree x 1
              • klier

                klier Member

                Top Poster Of Month

                LOLLLL

                Yeah, or that. It could really swing both ways.

                If they can handle a company like Volvo, which they can, Lotus will be complete peanuts.
                 
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