Future of Lotus

[Frickin_idiot]

Lotus has been run on a shoe string for the past few years, and despite this I feel JMG has done a wonderful job. If the new owners invest the future will be bright, certainly better than the current owners imo.

[Stuart Monument]

DRB hicom shares have been suspened from trading. News to follow very shortly, let's hope its good and not bad news

[clivef38]

Hmmmmm.

[Swiss380Cup]

I'm pretty confident.... you need someone with big pockets, lots of enthusiasm to revive flame...Chinese are hard workers, proud, cash rich and willing...... plenty of amazing new and improved models ahead.... it's the first time they put their hands on a sports car manufacturer...... they won't f....k it up ....

[KAS-118]

Autocar also have a brief article about it https://www.autocar.co.uk/car-news/new-cars/geely-tipped-buy-controlling-stake-proton

I think Geely have done a good job with Volvo - and I'm hopeful that they do an equally good job with Lotus - whilst I didn't think PSA would know what to have done with them.

[Swiss380Cup]

Yes I'm glad it's not PSA... they'd have Opelised it....... whereas Geely is probably much interested in the Lotus Know How and craftsmanship and will use it hopefully as a show off of their newly acquired skills and technique......Someone in Luxembourg will get a fat bonus soon.......first time profitable in history and than the sale.... well.....looks like party time......... now we'll eventually get charge cooled, water sprayed monster Exige with 1'000 kgs and 500 HP........ Yeeeeeeeeeaaaaaaaaaaaa Haaaaaa

Edited May 23, 2017 by Swiss360Cup

[Bibs]

Made it into the FT too...

https://www.ft.com/content/19c854fc-3fcc-11e7-9d56-25f963e998b2

[NedaSay]

Well let's not get carried away. JMG will need to prove he can deliver the goods on new terms. And a lot of stuff will need to be reassessed... Group Lotus PLC shareholding structure first off and then Lotus cars supplying deals with Toyota will require some time and a lot of diplomacy convincing the new owners that the SUV project is viable and necessary will also be key and getting an immediate cash injection would be much welcomed.

Getting access to Volvo cabin tech would be amazing, Geely investing in Lotus engine tech one way or another would be cherry on top. I'm very curious as to what will materialise hopefully Lotus will be wholy owned by Geely. Proton is set to use Geely/Emgrand platforms and Geely could apply maximum pressure in China to get the Lotus moniker back from Youngman. 

I wonder how JMG is doing/feeling these days?

[Bibs]

FT article says they'll own more than 50% but less than 75% of Lotus. 

[NedaSay]

Thanks for the info. That would still make them the first shareholder and decision maker with DRB-Hicom retaining a minority share what I would hate would be for Lotus to be a secondary subsidiaries thru proxy. 

[Andrew C]

Good news anything is better than the current position. Just  in the nick of time.

 

[NedaSay]

Let's hope it doesn't derail the work JMG and the crew are doing at Hethel at the moment, Considering the shoe string budget they have, they are over performing but we are still supposed to get a new Cup250 launch or will it be Cup260 very soon  around Goodwood and an Evora variant probably the Race460 by years end if they maintain the current pace.

https://www.ft.com/content/19c854fc-3fcc-11e7-9d56-25f963e998b2

Edited May 24, 2017 by NedaSay

[Bravo73]

JMG's work is done. I doubt if he will survive the transition. 

[Snoopy1969]

Does anybody know how long Lous has a engine supply contact with Toyota? The next years will be f u l l of Suspension for Lotus I guess, Volvo ist doin generally fine if we could trust the moto-journ. (;-) )

As Volvo is not known for a wide range of engine lately (only 4pots I believe, but to be fair, rated very high, esp the "Polestar

https://www.polestar.com/de/2016/12/12/polestar-wins-wards-10-best-engines-award-for-s60-and-v60-polestar/ ) we will have to see what will be in future cars of Lotus......

@Bravo73 Yip, you might have stressed a Point......

[webfoot]

http://www.thestar.com.my/business/business-news/2017/05/24/drb-hicom-to-sell-49pt9pct-in-proton-to-geely-holding/

 

More info on Lotus ownership split from the Malaysian Star

 

The deal will also see Proton exiting its stake in British carmaker Lotus. Geely is taking a 51% stake in Lotus and Etika Automotif Sdn Bhd the other 49%.
 

Who are EASB who have bought the other 49% of Lotus from Proton?

 

 

And more from Paul Tan

https://paultan.org/2017/05/24/geely-to-acquire-49-9-percent-stake-in-proton-51-percent-in-lotus/

We also aim to unleash the full potential of Lotus Cars and bring it into a new phase of development, thanks to our experience accumulated through Volvo Car’s revitalization

Edited May 24, 2017 by webfoot

[internets]

Out of interest I was looking at JMG on LinkedIn a while ago and noticed it seemed most of his tenatures have been around 2.5/3 years and certainly no longer, he joined Lotus May 2014.

Thanks for pasting that. That article also says:

"As part of the deal, Geely would also buy the entire stake in Lotus, British sports carmaker from Proton"

[internets]

From http://www.motorauthority.com/news/1110606_geely-agrees-to-purchase-major-stake-in-lotus-proton

 Geely CFO Daniel Donghui Li said in a statement. “We also aim to unleash the full potential of Lotus Cars and bring it into a new phase of development, thanks to our experience accumulated through Volvo Cars’ revitalization."

[The Pits]

Music to my ears!

[jonwat]

More in Autocar. 

[LazyDonkey]

Aye it's definately good news.   I sat in an XC90 this morning and if it's evidence of the good things that can happen under Geely ownership then i'm very confident in the future. 

I wouldn't write off Gales just get though - if they are serious about letting Lotus flourish then they won't want to change too much. 

Not many Chinese on the Volvo exec board for example....just a lot of Volvo people !

http://www.volvocars.com/intl/about/our-company/our-company-at-a-glance/executive-management-team

Edited May 24, 2017 by LazyDonkey

[NedaSay]

Personally I do hope JMG will be kept at the helm, he's done a great job on a limited budget and does have a plan that is not only doable but financially sound. During is short tenure at Peugeot the group struggled but he successfully launched DS which is doing very well. Lotus is doing well enough.

The good news is that Lotus will now be part of a much bigger group with its own tech. Geely produced last year under their own brand some 750k cars so if you add Volvo's 500k, that's 1.2M cars sold worldwide, 500k of which are premium cars displaying a very impressive array of cabin and engine technology. 

Geely has developed its GETEC engine line in the past 4 years and has access to Volvo Drive E. More interestingly if Drive-E is limited to for cylinders, the GETEC range has everything Lotus may want to play with from a 1.5l TGDI to a modern 3.5l all aluminium V6 with TGDI fully compliant with Euro V regulations, so with a bit of fettling from Volvo and Lotus would make it to Euro VI and. So one could imagine a "Drive-Eed" V6. Geely has its own gearbox manufacturer called DSI - based in Australia, formally part of Borg Warner which produce a 6 speed DCT and is working on a 7 speed DCT. Geely and Volvo have the wiring loom Lotus so desperately needs and access to some of the best first tier OEM suppliers in Asia not to mention state of the art factories and engineering centres in both China and Sweden.  So if you had Hethel to the mix they should get some very impressive tech to play with.   

 

When it comes to the V6 engine it is similar in size and displacement, here are the specs (looking for more info on that):

Engine Technology 6- Cylinder in V-Configuration (V6), DOHC, 24V, VVT - code name JLV-6G35V

Engine Capacity (cc)‎: ‎3456

Max Power‎: ‎275 hp @ 6200 rpm

Max. Torque‎: ‎326 Nm @ 4700 rpm

So Lotus only needs to get working on it and could have it ready for implementation on the Evora and Exige in a year or so, they could  also decide to let Exige and Evora current models use the Toyota powertrain until they are replaced, that would happen in 2021 and 2022 according to the plan before the acquisition. Geely is also a very pragmatic manufacturer that did not rush things at Volvo, they knew they needed time and let the Ford supply deal last until the Drive-E engines were ready to go. Despite the existence of DSI they also have a relationship with AISIN thru Volvo that provides the 8 speed auto, So it appears to me that they want to get the products right therefore I don't think we'll get to see the Elise before 2019-2020. We may get another deep refresh for Evora focussing on cabin tech.

The good news is Lotus will now get to be crown the jewel I believe they deserve to be, and  if Geely say they are going to unleash the brand it may get very interesting, Lotus is set to jump into a new market segment.   

Oh and last bit of good news Geely believes in Motorsport, Volvo is allowed to compete in WTCC while Geely runs the local F4 championship so Lotus Motorsport may be revived before too long.

Edited May 24, 2017 by NedaSay

[LazyDonkey]

Great post - thanks 

[NedaSay]

Ah and i forgot i think it is safe to assume that the Goldstar deal is dead or will have its scope heavily revised the first Proton car to come from the purchase by Geely will be a Protonized Boyue SUV.  

The Goldstar JV was all about getting to get a foothold in China and an SUV, well somehow Proton got both. Lotus may get to use the XC40/60 underpinings to prop their own SUV. 

[NedaSay]

DRB-Hicom selling 100% of Lotus to Geely (51%) and Etika Automotive (49%) for $100M!!!

https://paultan.org/2017/05/24/drb-hicom-to-sell-lotus-in-its-entirety-for-100-million-geely-to-acquire-51-etika-automotive-to-buy-49/

So it was quite a cheap acquisition for Geely. Etika automotive appears to be part of a Malaysian financial group. I am looking for info on Etika Automotive but can't find much, the usual holding group with diversified assets and activities you can find anywhere. Etika Strategy had previously acquired DRB-Hicom back in 2006, so pretty much a cascading holding smoke screen.

Edited May 24, 2017 by NedaSay

[hedgerley]

Damn, £100m. If I'd won the lottery last night I could have bought half of Lotus and still have ££52m leftover......

Seriously this is great news, as I and others have said. Geely do appear to be the perfect owner/partner. Lotus brings its lightweight and chassis technology as well as its sports car heritage to the party and gets access to all the auto tech it so desperately needs. I can even see them helping Geely out with the taxi business - remember they did an all electric London Taxi Cab a few years ago?