Future of Lotus

[BrazierD]

3 hours ago, Bravo73 said:

There seem to be plenty of Volvo dealerships across the USA. I imagine that it won't be long before they start looking after Lotuses as well. 

Scotland is way ahead on that!

https://www.google.co.uk/maps/@55.9277205,-3.298751,3a,23.1y,274.36h,82.27t/data=!3m6!1e1!3m4!1stf8jaV72bQAmTK3TEcuL7w!2e0!7i13312!8i6656

You can just about see the Lotuses stuck away in the corner...

[NedaSay]

That will be a very interesting challenge for the Geely group to find incentives for Volvo dealers in North America to start selling and servicing Lotus in the future without hurting the current dealers.  It should also help Lotus to open new markets in South America, Russia. I'm not even speaking about the number of Geely dealership in China.

[NedaSay]

Ok, we all really want Volvo people to come and land a hand or two into things, and they hopefully will at some point but the truth is Geely purchased the company, so I went digging around. As some of you may know this is what I do for a living, research boring stuff nobody cares much for... Cause it's not hard/pure science... So here is a recent example of a pure Geely product (actually there's a lot of Volvo bits in it, and some older Mitsubishi derived bits too).

Geelies are not sold in N.A or the EU, so I went to motoring middle east for an english speaking review of the Emgrand X7 aka Geely Boyue, soon to serve as base for the Proton SUV. Emgrand is Geely upmarket chinese brand so I think this is what could make its way into the Lotus parts bin eventually.

https://www.youtube.com/watch?v=fwPR5rq4yNk     

I also went around for a "paper" article and found this :

 http://www.thenational.ae/arts-life/motoring/road-test-2016-geely-emgrand-gt#page1 (again from the UAE)

On both occasions, it seems like a rather cohesive package, as I said the cabin as some late Volvo tech (dash binnacle, stokes...),I have to say I've seen worse interiors. the engines used in the video is an early Geely engine based on a Mitsubishi design, I could not find much on the 1.8T as my Russian is non existant. But if Lotus was to source their next entry model Elise engine it would probably be that 1.8T (good for 180hp) or even the 1.5T. Bear in mind these cars are probably closely linked to the XC90 early platform but are not entirely Volvo SPA based. After doing some checking the autobox really is a 6 speed DCT. 

Since they've purchased Volvo Geely as phased out most of their crappy prior design, There hasn't been a claim of a current Geely car being a rip off some foreign cars in a while, and since Peter Hornbury has been hired as the chief of design their design is getting more distinctive.  So much so that the new owner of Lotus is the first Chinese car company to have received the Chinese car of the year award...

 

 

[TBD]

18 hours ago, BrazierD said:

Scotland is way ahead on that!

https://www.google.co.uk/maps/@55.9277205,-3.298751,3a,23.1y,274.36h,82.27t/data=!3m6!1e1!3m4!1stf8jaV72bQAmTK3TEcuL7w!2e0!7i13312!8i6656

You can just about see the Lotuses stuck away in the corner...

Same her (at least in Mainz) http://www.autohaus-haese.de/

[Snoopy1969]

Also mueller-motors.de ! (Königswinter, region Köln / Bonn)

[Hellers]

Interesting additional context from Business Mirror/Bloomberg: http://www.businessmirror.com.ph/chinese-billionaire-adds-proton-lotus-to-expanding-car-empire/

The article mentions that not all M&A activity goes well and can often fail early on. And of course that's really only about the Proton part of the deal, and therefore really reinforces the general positivity of Geely taking the controlling interest in Lotus. 

However, an important side note: we are all assuming (maybe falsely) that because the Geely shareholding in Lotus is reported to be 51% that they will 'control' Lotus and therefore 'own' it and be able to make all the decisions.

This all depends on the Memorandum and Articles of Association, and therefore who owns the voting rights, and the two are NOT necessarily the same, although I expect (and hope) that in this case, they are.

Remember that all limited companies and partnerships are 'owned' by ALL the shareholders absolutely regardless of relative percentage of shares, and minority shareholders have significant control dependent on the agreement reached between the owners within a legally-binding Shareholders Agreement and the percentage of their shareholding. For instance, google 'drag' and 'tag' rights.

efa.

Edited May 28, 2017 by Hellers

[Andyww]

The Lotus acquisition makes perfect sense for Geely. What does not make sense is the acquisition of LTI or Carbodies or Manganese Bronze or whatever they were called at the time. That looks very much like an impulse buy into something quintisentially British rather than a prudent financial decision. 

Once the novelty value of having cute English black cabs running around in China wears off, it might not be something they want to continue with. 

[mawheele]

Couldn't disagree more. London Taxi is a great opportunity. Currently selling taxis in a tiny UK market with an opportunity to sell an iconic electric product to several global markets. Bought for peanuts/nothing and an opportunity to create a valuation many multiples higher. No brainer business decision to cross leverage electric powertrain and battery technology. Done well, this is the next MINI of this market. 

[Bibs]

[nerobi]

Polestar Is Set To Make Its Own Electric Sports Car

http://www.roadandtrack.com/new-cars/future-cars/a10010015/polestar-is-set-to-make-its-own-electric-sports-car/

[NedaSay]

Read Polestar will first spice up all Volvo models ... May ask Lotus engineering to help out with chassis tuning if the purchase of Lotus by Geely goes ahead. Then far into the future, they may also use Volvo design projects as their own like that coupé we've all seen a few years back.

That thing was just beautiful to look at and I really hope Volvo or Polestar brings it to market, if anything to compete with the new Lexus LC500h. And if they ask Lotus to land a hand on that one well they'll have yet another car that will sell like hot cake.

[auRouge]

Editorial "Ed Speak" in August edition of EVO...

"for now, in just happy Lotus appears to have a future, one of investment and new models that will focus on the thrill of driving" And that's got to be a good thing, hasn't it?"

all v positive!

quite proud of myself all of a sudden being a Volvo XC60 and Elise owner ????

[KAS-118]

Read this today https://www.bloomberg.com/news/articles/2017-06-23/chinese-billionaire-says-lotus-sports-car-may-be-made-in-china 

If true I hope its to be read as they will expand production so some will one assembled at Hethel and some in China.....

[Bibs]

I think the plan has always been that the potential SUV would be manufactured in China. 

[KAS-118]

Now in Autocar - although they think that the HQ will remain in UK.

Yes, I guess a 'large' production run that the SUV could bring might justify that being made in China

[theelanman]

a whole new production line would need to be made......so I guess it wouldnt matter where........hence China being the favourite.......

moving an entire production line is very different tho'..........and from a personal experience....a huge pain dans la derrierre........and usually ends up being a 50-50 gamble.......

Ive seen many go......only to come back to where they should have stayed....within a couple of years.........and at great expense.....

[NedaSay]

I think it will be a new manufacturing unit in China, probably with its own design studio, but engineering, the main design studio and some assembling will remain in the UK.

I do think that because that's what they've done for Volvo and the London Taxi Co which just opened a new assembly factory in Coventry. Actually that may be the reason for which some extra assembly is made in China, the factory is in need of an overhaul. Geely hasn't closed any of Volvo factories they've actually refurbished the Belgian factory and are gearing up to open their American factory so that bodes rather well.

All in all that would not be far from what many here had in mind, The SUV seem to be edging ever closer to production, I think it's fair to assume that it will not be the only Lotus "Designed in Norfolk" and "Made in China".

Electrification means Lotus is really likely to get Drive-E T8 spec engines before too long,  further lightweight may mean switching other to aluminium bodies and a very liberal use of carbon composites on key element. Now AI is interesting as I wouldn't have thought about it for Lotus, as a sports car company it is a bit odd, I'm pretty sure it would be utterly useless in the Elige and Evora but the SUV would be for many their daily driver so it would make sense to have it on that car and should Lotus become luxuxy car maker then it would make a lot more sense. Therefore I would expect the SUV to come with the T8 spec engine and the full array - level 5 - of autonomous driving.

[Kimbers]

Volvo Production is slowly being moved across there by Geely. I know several people at Volvo and all of them are worried for their jobs.

Lotus production is very specific and it would be expensive to move existing production over there but I suspect new ones may be moved, it makes financial sense. Labour is much cheaper, its much easier to access the Asia Market, avoids import duties in China etc etc.

[Mark Blanchard]

Great news about Lotus.  Who knows, maybe they could develop a 2 door supercar or something and call it spirits, sesprits. . . or something.

[Andyww]

The world, including China, want to buy high-end performance cars made in the UK not China. Sometimes we dont appreciate the brand image the UK has in China, even though not always justified.

SUV and Volvo buyers dont care so much where its made so makes sense to set up a new line there for those.

 

[silverfrost]

I wish Lotus cars all the luck in the world and can only hope they some how pull some of the range to production that only made it to prototype stage in the Danny Behar days.

The Elite looked fantastic as did all the other concepts 

[Mark030358]

If Lotus build cars in China, i.e. The new Exige, Elise, Evora, to flog in the UK, this will be my last Lotus.

cheers

 

Mark

[Bravo73]

My guess is that they will keep limited production at Hethel (for the limited UK market). There were be additional facilities in Europe (for the EU market) and China (for the rest of the world). 

[silverfrost]

Not sure regarding building cars in China, with British made cars to my understanding folks abroad like to purchase cars made under the UK as it is a major selling point of the brands, regardless of costs of production or shipping that could be saved.

60 percent of range rovers produced in the Midlands still go to China !  And they have factories in Mexico Brazi and China already so it does not mean Lotus cars will be produced abroad.  It may produce some such as Suv type cars but I strongly feel that Hethel with stay as the development centre and the sports cars will stay in production on British soil at Hethel imo. 

 

 

[Frickin_idiot]

My hunch is that production will continue at Hethel with major increases in production being based off shore.