Lotus future in the UK

[mdavies 74]

It might be my browser, but I needed a fair bit of clicking from the front page to get to the actual story. Initially I thought it was just the pic and the headline.

Rather dispiriting in that it illustrates the inverse of the "market hype" that we have perhaps become too used to, but if the new approach succeeds in getting operations grounded and building a platform for the future, I won't complain. No forecast of the future re the Esprit, although given the remainder it's development is hardly likely to have been accelerated. In immediate terms the key disappointment is:

"If you were expecting ‘two’ new Lotus variants to launch at Goodwood, then you’ll be disappointed to hear those plans have been shelved"

Edited June 28, 2012 by mdavies

[Gus82 0]

I just hope these two cars re-appear soon. Its very difficult to understand why you would cancel versions of the current product that would have been more appealing and were so close to production. As I said on the Goodwood thread, hopefully these cars will appear at the Paris motorshow in the autumn.

I think we need to face the fact that the situation is fairly bad, but hopefully there are one or maybe two cars that can be developed that will change things. My worry is that the management may see the way out as concentrating on the successful engineering department. Turning the Esprit into a fuller line up and getting it to market soon is essential.

[Stirling_Villeneuve 105]

With no talk of investment in the future and the emphasis on heritage I wonder whether Goodwood has become a shop window for the sale Lotus Cars itself.

[NedaSay 835]

Well it for sure doesn't bode well for the future of the company in the hands of DRB... I want the MJK era back!

I hope that at least Elise S and Exige S will be developed to be sold in North America again!

Edited June 28, 2012 by NedaSay

[Bee 85]

And so it continues ... Actually wondering if we'll see the Esprit, now, never mind my Elite!

http://www.edp24.co.uk/business/three_group_lotus_managers_are_suspended_1_1425520

[Guy W Johnson 1]

They are getting ready to sell the Company.

[mdavies 74]

"....suspended managers are believed to be part of the legal, human resources and finance teams....." (EDP report)

Guy, as those are key corporate functions, I think they are disembowelling Lotus as a company but perhaps (let's hope) keeping it as a technical/design/production entity. Your conclusion may well be right, but not necessarily. Perhaps they want to put their own people in - quite possibly recruited in the UK, but new and "untainted".

Edited June 29, 2012 by mdavies

[NedaSay 835]

Mel I really want you to be right! When I see the improvements/expansion realized at the factory I really want to believe that there's still a fair bit of development going inside. That what needs to be done to safeguard the company's future as a whole will be done and that new Elise, Exige, Evora and Esprit will all be on sales or presented soon.

Anyway if DRB wants to sell the business it needs something to sell a three tier range is better than a two tier range and a halo car could/should/would do marvel to attract potential buyers I think.

[simonb 12]

If this includes Dany's thug bodyguard that is no bad thing

[Bibs 11,155]

Unfortunately not, yet...

[ramjet 1,086]

Who's that?

[Stirling_Villeneuve 105]

Out of interest could anyone from DRB be assed to drag themselves down to Goodwood? I mean they only own the company FFS!

[DarrylV8 226]

Out of interest could anyone from DRB be assed to drag themselves down to Goodwood? I mean they only own the company FFS!

What and have us lot have a verbal with them; no FC!!

Bibs has the new COO been to the stand?

[softlips 19]

Out of interest could anyone from DRB be assed to drag themselves down to Goodwood? I mean they only own the company FFS!

DRB were at Goodwood!

The company is not for sale - although if the right offer was made they would of course sell.

Instructions have been given to sell what they can actually supply not future models, the Esprit is still in development with the launch in 2014 (put back following the shut down). The other models may be modified as they'll look dated by the time they're launched. The Evora roadster has not been developed but us not ruled out - although it's unlikely. Elise SCs and Exige V6s are selling well in the UK but the Evora isn't - although that is selling well in other countries. No one was surprised DB got the boot.

Talking to the Lotus management they seem more confident than they did at Frankfurt to be honest.

[NedaSay 835]

If this includes Dany's thug bodyguard that is no bad thing

Are you speaking of a not so likeable canadian from italian descent?

[Stirling_Villeneuve 105]

DRB were at Goodwood!

Talking to the Lotus management they seem more confident than they did at Frankfurt to be honest.

That's good news at least. Shame DRB have no idea about PR though...

[Bibs 11,155]

I met a couple of guys from DRB, they were very affable

[61GT 4]

That's good news at least. Shame DRB have no idea about PR though...

Sounds like DRB are actually focussing on building and selling cars rather than PR at present.

Seems a much better approach to me at least.

[Stirling_Villeneuve 105]

One extreme to the other... a little balance wouldn't be a bad thing.

[Iconic Ride 267]

As usual, Skiddmark's Steve Davies cuts right to the chase, and with his usual clarity. He remains (for me at least) a breath of fresh air when it comes to concise and accurate analysis of complex situations that can be understood by non-industry lay people such as moi.

From the 28 June article:

"A description I gleaned from those inside Hethel was of an environment akin to a bootcamp – with DRB people on the ground supervising every activity and imposing the structure and routine of a volume manufacturer.

There is good reason why Farikullah was appointed as COO rather than CEO of Lotus – he’s a fixer, a company man, who knows the rules and is used to keeping a low profile. While most company leaders would by now have publicised their plans, that’s not Farikullah’s role – he’s there to clean and prepare the business for an ‘as yet’ un-named goal."

And from one of his posts in the blog portion (in response to the "Dany Era" discussion):

"I agree that despite the widespread cynicism they've come a long way in a short time - but from discussions I've had internally they acknowledge they tried to do too much at once. Also Dany's style of management was raise expectations and then work like a slave to make it happen.

What many people fail to remember is that Dany was brought in with the mandate to turn the company around - not to run it as it had been. He was promised a respectable budget and carte blanche to bring in the people and facilities to make the vision a reality.

The fly in the ointment was the timeframe given to achieve it. Proton knew they were heading to a very dark place (in terms of their financial performance) and rightly or wrongly they (Dato' Syed) placed a bet on Dany turning Lotus around and helping to offset some of Proton's decline.

While Dany may not have covered himself in glory, can you really blame him for taking on his first CEO role with such a mandate? That's the kind of challenge that most people in his position would have jumped at. The risk was high, but that's exactly the kind of buzz that many of us enjoy.

He made mistakes, but that's how we all learn to innovate and grow - fortunately few of us fail quite as publicly."

[softlips 19]

I was told they would be roughly using Danny's road map, there might be some diversions, the odd detour etc but the feeling was the goals were the right ones.

Remember Mike Kimberly actually said when the Evora was launched that it was the first of a much bigger model range which would be more up Market.

[DanyBaharFan 0]

3 more Lotus managers suspended

http://www.edp24.co.uk/business/three_group_lotus_managers_are_suspended_1_1425520

Gino Rosato perhaps??

[Bibs 11,155]

Hi DBF - I've merged your topic into this one, it's a fairly lengthy discussion on the subject already

GIno is still there. For how long though is the question.

[Stirling_Villeneuve 105]

"However, production at the car maker continues and a new model – the Exige S – could go into production in two weeks’ time."

Could? It's a definite surely???

[Kimbers 1,781]

"....suspended managers are believed to be part of the legal, human resources and finance teams....." (EDP report)

Guy, as those are key corporate functions, I think they are disembowelling Lotus as a company but perhaps (let's hope) keeping it as a technical/design/production entity. Your conclusion may well be right, but not necessarily. Perhaps they want to put their own people in - quite possibly recruited in the UK, but new and "untainted".

Just catching up after 5 days away. These may have been Key Corporate functions but there are other people in those departments. These were department heads (yes I know who they were) and one would suspect that they have been involved in whatever it was the DB was sacked for non? Either that or were complacent in letting it go on.

Frankly I'm suprised there haven't been more people going. The company is very top heavy with Managers and from what a friend tells me who's seen the accounts there has been more than a 10x increase in Management wages under DB.

As for the rest, I believe that what DRB are doing is what needs to be done to get the company back on track. Concentrate on product and sales rather than marketing products that don't exist.

I was told they would be roughly using Danny's road map, there might be some diversions, the odd detour etc but the feeling was the goals were the right ones.

Remember Mike Kimberly actually said when the Evora was launched that it was the first of a much bigger model range which would be more up Market.

Indeed. I've said this elsewhere (Sawards blog for example) but MJK had the Evora as the tip of the iceberg. The Evora S and IPS were already sorted, the new MES (Esprit) was well into design and planniong and would have been out for a year now. Then there was the updated Elise and Exige (including a V6 which had already been fitted into the Exige as a test bed) and then a new Supercar above the Esprit.

All this was to be done whilst improving the quality on the Evora, which they struggled with initially because of lack of funds.

So. Look at the above and tell me what the difference is between DB's plan and MJK's?

- The new car designs were less Lotus and more Italian

- MJK's plan involved careful planning of both staged development and funds and use of in house designs and development

- DB, it seems, had no cost control and though he had the money, intead of using it for development he seemed to jump from one idea to the next with little plan. Infact this happened so much he spent the bloomin lot and still didn't actually finish anything!!

- MJK wanted to enter the Evora into racing series and had developed the racing version and 24hr Evora before he left, but DB's ideas were more grandios and included many many race series (again a lack of focus!)

Don't get me wrong. I agree with DB that Lotus needed to improve quality and be seen to be racing. MJK and his team didn't have the funding for it at the time, so had to stage development of anything they were doing.

So now the legal disclaimer: All of the above is was readily available from magazines and interviews and doesn't reflect the views of any person other than myself.