Lotus Faces Loss Of Engine Supplier

[Mark H]

http://business.edp24.co.uk/story.aspx?bra...3A04%3A03%3A890

 

 

 

Lotus faces loss of engine supplier

30 April 2005

 

 

Norfolk car maker Group Lotus faces losing one of its engine suppliers after MG Rover's administrators said the Powertrain engine plant would not reopen.

 

PricewaterhouseCoopers (PwC) met suppliers this week to outline a plan aimed at maintaining engine production at the Longbridge factory for up to four months. Most suppliers agreed to the plan, but a "significant" number would not agree terms.

 

Now the plant is to be shut, and more than 360 workers made redundant, while efforts are made to find a buyer for the business.

 

About 1000 workers remained at Powertrain, a separate arm of the MG Rover business, when administrators were called in this month.

 

The news is a blow for Lotus, which uses the K Series engine in about 15pc of its cars. It is about 350 engines to meet planned production for the remainder of the year.

 

Most of its cars now feature a Toyota engine, which was introduced to allow it to meet the stricter emissions standards of the US market.

 

But the K Series remains popular among some customers, including Lotus enthusiasts in the Far East who are keen on the British-built engine.

 

Joint administrator Steven Pearson said: "Despite everyone's best efforts, a viable solution for all parties to see production restarted could not be achieved."

[Snapper]

It will also affect Caterham which is about 90% of their cars, Good job they have the duratec planned for their business.

 

A great loss for everyone else because I know that the worker have worked vary hard to give MG Group a fighting chance to survive.

[pizzaboy]

R.I.P. K-series

[Martin R]

Ho hum

[Scott_Mac]

I think Caterham with the Duratec and Lotus with the Toyota may have got out at the right time... I can't imaging it being a major issue to drop the standard 140bhp Toyota lump into the "affordable" Elise.