free hit
counters
Lotus in the post DB era - Page 35 - Lotus / Motoring / Cars Chat - The Lotus Forums Jump to content


Lotus in the post DB era


Recommended Posts

Because that's all there is in this review of what DRB will be announcing next week at their annual 'media retreat'. The analysts view is it confirms DRB will not be selling Lotus. 

 

http://biz.thestar.com.my/news/story.asp?file=/2013/1/7/business/12536862&sec=business

Link to post
Share on other sites

Upgrade today to remove Google ads and support TLF.
  • Replies 1.4k
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

Just thinking, maybe we should close this thread and start a new one "Lotus in the JMG era" - in the hope that it will be a long and prosperous one.

Good hair but that last sentence earns him a kick in the balls next time I see him, what a knob.   http://www.sapu.net/want-a-e1m-car-like-nothing-else-on-the-road-dany-bahars-your-man/  

Yup, and it would be niggle free from lessons learnt from 5 years of Evora. Offer different engines/transmission packages... 1.6-1.8 turbo 3.5 Supercharged from Evora/Exige How can something th

Posted Images

There's a huge Lotus dealership opening in Malaysia tomorrow too...

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

For forum issues, please contact the Moderators. I will aim to respond to emails/PM's Mon-Fri 9-6 GMT. 

Link to post
Share on other sites

Proton confident in Lotus turnaround.

 

http://www.mysinchew.com/node/81676

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

For forum issues, please contact the Moderators. I will aim to respond to emails/PM's Mon-Fri 9-6 GMT. 

Link to post
Share on other sites

I'm beginning to wonder if we will ever get a formal announcement of their 'turnaround plan'. It seems DRB just want to keep their heads down and work with Lotus to make it happen and we will only get these snippets as and when there is something to announce. Which is probably a good thing.

 

What little they have said has at least been reasonably positive. If they had planned to dispose of Lotus I doubt they would be investing in new stores and delaying deliveries until 'quality is right'.

 

As a member of the media posse Bibs, are you still expecting a big announcement? Or should we just be content that Lotus remains in business and not expect anything from DRB?

Link to post
Share on other sites

I asked only yesterday if there was going to be any announcement as it's been 12 months shortly and was told not to expect anything. The press release from the Malaysia showroom opening is on it's way shortly but I doubt there will be anything that juicy in there tbh. 

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

For forum issues, please contact the Moderators. I will aim to respond to emails/PM's Mon-Fri 9-6 GMT. 

Link to post
Share on other sites

Theres a big pic of it on the Lotus cars .co.uk webpage. First page

 

Buddsy



it comes up full page if you clear your cookies etc first

 

Buddsy

 

"Belief is the enemy of knowing" - Crrow777

Link to post
Share on other sites

That does look good. They've even got an F1 car in there!  A not inconsiderable investment on what appears to be a greenfield site. Its interesting to see the DRB-Hicom name prominent under the Lotus roundel as well. That seems to indicate an aura of permanence. 

 

Coming soon after the new Italian dealers and with the Exige S hitting the road at last, I guess we should be mildly encouraged. I just need some good news on the new Esprit and I will be content....

 

http://www.lotuscars.com/gb/events/cars/malaysian-flagship-dealer-launch

Edited by hedgerley
Link to post
Share on other sites
I asked only yesterday if there was going to be any announcement as it's been 12 months shortly and was told not to expect anything. The press release from the Malaysia showroom opening is on it's way shortly but I doubt there will be anything that juicy in there tbh. 

So outside of DRB showboating in their own backyard does this really mean anything for Lotus? 

Edited by Stirling_Villeneuve

Currently having an illicit affair with another marque, be back in the fold one day... B-)

Link to post
Share on other sites
If they had planned to dispose of Lotus I doubt they would be investing in new stores ..

So the money for those stores was invested 'by Lotus' ? ..or is it more realistic to see it as investments of a group of independent dealers, who think the deal with gropulotus will run on long enough, at least for a notable turnaround in investment.

*********************************************************************

to name the things if I see them, that's what I call integrity..

*********************************************************************

Link to post
Share on other sites
Sure, but one is on southern California (Lotus) and the other is somewhere exotic (or so it looks.)

 

Matter of Money I guess.  Lotus did it first and it looks much better!

Perhaps the difference is that Mclaren will finish it off and launch it !

Technically sound ...Theoretically poked !

Link to post
Share on other sites

Saw an article in the Automotive Press saying DRB had predicted turning Lotus around in the next 2 years. I think that pretty much says what they intend to do with it......

 

Ofc companies have said that before and still sold, but from the vibes I am getting locally it does seem to point towards them getting it all under control to run it, not sell it.

Possibly save your life. Check out this website.
http://everyman-campaign.org/

 

Distributor for 'Every Male' grooming products. (Discounts for any TLF members hairier than I am!)

Link to post
Share on other sites
So the money for those stores was invested 'by Lotus' ? ..or is it more realistic to see it as investments of a group of independent dealers, who think the deal with gropulotus will run on long enough, at least for a notable turnaround in investment.

 

My reading of the piece, underlined by the DR-Hicom branding underneath the Lotus roundel, is that this is being done by Proton and DRB directly. I see no mention of an independent dealer. The stores in Italy are of course different but as you say this does show a commitment to Lotus by the dealer network, which is encouraging.

Link to post
Share on other sites

Mark, what I meant was more in the way of: "how can Lotus and Proton have money to invest ..if it is said that there even isn't enough money left in the pocket to pay the supliers and pay the loan in Hethel ?" -so in other words to produce more evoras, Elise & Exige/Elise V6 ..you know that the production of cars & delivery to customers was notable 'slow' (not to say 'on a stop') last year. So first step would be to pay out all bills ..after that you can create a new image and try to get on new supplier contacts & customers ?!

*********************************************************************

to name the things if I see them, that's what I call integrity..

*********************************************************************

Link to post
Share on other sites

It was my impression that DRB made a significant investment a couple of months ago to finish the Exige, pay off suppliers and secure wages going forward. We're talking multi, multi millions.

 

However, the main issue is the massive loans and interest that the previous Management ran up. Until this gets cleared Lotus will struggle to be profitable. One of the reasons MJK made profit for the first time in 8 years (apart from the good management team and correct management of costs) was that he got Proton to clear the debts. And their debts at that time were less than a third of what DB ran up.

 

We know that MJK made £1.5 Mill, now imagine that you have a loan of £300 mill at ...I dunno, lets be kind.....3%. Annual Interest alone is £9 million!!! Without paying any debts back!  I know this is very simplified BTW, but it gives you an idea of the hill they have to climb.

Possibly save your life. Check out this website.
http://everyman-campaign.org/

 

Distributor for 'Every Male' grooming products. (Discounts for any TLF members hairier than I am!)

Link to post
Share on other sites
Mark, what I meant was more in the way of: "how can Lotus and Proton have money to invest ..if it is said that there even isn't enough money left in the pocket to pay the supliers and pay the loan in Hethel ?" -so in other words to produce more evoras, Elise & Exige/Elise V6 ..you know that the production of cars & delivery to customers was notable 'slow' (not to say 'on a stop') last year. So first step would be to pay out all bills ..after that you can create a new image and try to get on new supplier contacts & customers ?!

 

That was true 6-9 months ago Gunther but as we know production resumed fully late summer and, notwithstanding the delays in Exige S deliveries 'to get the quality right' I think Lotus are or will shortly be operating BAU under whatever plan DRB has agreed with the bankers.

 

Speaking of which, I seriously doubt DRB/Proton/Lotus would have been allowed to invest in these new facilities nor would they have been able to get production going without the agreement of the banks and payments to suppliers. As Kimbers suggests, a deal has probably been done and supply contracts brought up to date.

 

We should all rejoice at this sliver of good news!

Link to post
Share on other sites
However, the main issue is the massive loans and interest that the previous Management ran up. Until this gets cleared Lotus will struggle to be profitable. One of the reasons MJK made profit for the first time in 8 years (apart from the good management team and correct management of costs) was that he got Proton to clear the debts. And their debts at that time were less than a third of what DB ran up.

 

This got me scratching my head. I thought that Lotus had managed to secure 500 million in investment to fund the new cars?

 

Did they use this all up and then start borrowing? I doubt it.

 

I wonder if what happened is that the money was promised, the plan got under way, then the investment didn't materialise after all, or dried up mid-stream. I suppose what we'd see then is the management desperately trying to borrow in the short term on the basis that the promised money would eventually appear. Who would lend them money otherwise?

 

 

If you're a company with a small range of product with a tiny niche appeal and a track record going back decades of making loss after loss most years, with insignificant amounts of profit at best which doesn't add up to enough to fund major projects, then there's no alternative to securing significant investment to shake things up. Saving up pennies in the piggy bank isn't going to help, especially when you have such a vulnerable business in the first place.

 

 

Lotus has found itself owned by people who I don't think have the financial muscle to inject what is required to kick the business up to the next level. 

 

My hope is that they'll sell it to someone who has, but perhaps their plan is simply to cut costs, get some insignificant profitability, then hope that suddenly thousands of new lotus buyers will materialise out of thin air with the current product lineup.

 

Can't see this happening myself.

Link to post
Share on other sites

Interesting though... As I read elsewhere ' Lotus could be scaled down to become the new Morgan, meanwhile Caterham with the help of Renault expand to become new Lotus'. 

 

Going back to the Sunday Times article, did Lotus really sell 1043 cars in 2012?  

Currently having an illicit affair with another marque, be back in the fold one day... B-)

Link to post
Share on other sites

That's accurate. Remember the UK figures we see so often are a small market for Lotus, they sell 3/4 times more just to Japan for example.

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

For forum issues, please contact the Moderators. I will aim to respond to emails/PM's Mon-Fri 9-6 GMT. 

Link to post
Share on other sites

What I find worrying is that we have seen so many companies being bought either by "investment" banks or in smaller instances MBO's (Comet /Jessops) nad they all lurch from one re-financing crisis to the next disaster.

Make no mistake, the DB legacy of debt is HUGE. All his profligate activities and lavish lifestyle......

As stated above, Lotus cannot service this size of debt without DRB paying it off, or at least part, and getting some of it written off.

 

We are all getting severe cramp with having everything crossed for so long.......

Link to post
Share on other sites

just a moment -see ..this is old numbers, as Mark suggests in his prior post  "..Günter , it was true 6-9 month ago.."

 

The article notes "a loss in the year to March 31, 2012.."  -so it is just the numbers for the bussiness year '11 to the '12 season.

 

With the time as the production was on a halt inbetwen this period of time ..right ?

 

The finance help to restart production was pumped into the company to pay out the suppliers & stuff ..and let it run again in summer, of course still with a loss .  So it will be interesting to see the numbers for the '12 to '13 season, with the actual effect of the restart

*********************************************************************

to name the things if I see them, that's what I call integrity..

*********************************************************************

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




×
×
  • Create New...