Several times, we informed you about the future that could run Lotus Cars. The firm founded by Colin Chapman has not had a great luck, that is to say, in financial matters. In fact, your current array DRB Hicom has been forced to sell it to the chinese giant Geely after competing “at least in rumors,” with the PSA Group. Yes, the cat has taken to the water the firm that controls Volvo, but with the integration of Lotus in Geely things get interesting for the English firm.
The first thing you want to do the CEO of Geely is that Lotus Cars again to be cost-effective. Things are not easy for the small English brand, because for more than 20 years leads to losing money. The first point that I would be thinking of Li Shufu to alleviate the high production costs of the signature would be to move part of production to China. This movement is exactly the same as that which has followed Volvo with the production of its new sedan S90.
This decision, a priori controversial, does not affect the results, and sporty image of Lotus Cars. Remember that Geely has been able to improve the positioning and image of Volvo with measures of this kind, without which the financial results and sales are suffering. Norfolk will continue to be the nerve centre from which come the designs and technology that go to the next Lotus in the future, but its manufacture will be much more economical.
As stated by Li, both Lotus as Proton “will experience new technological trends including the electrification” in addition, it has also validated that
“the deep knowledge of the region obtained with Proton and Lotus through this transformation association, along with our technological expertise and leadership in innovation, opens the door to Zhejiang Geely to become a major player in the asian market” […] “we will work together to make the most of our strengths is reinforced”
By now, the Lotus does not move the production to China, but Geely will have to submit at some time dates and deadlines for carrying out this transfer. Will have to see how events unfold.
Source – Bloomberg
You may be interested to