Mark H Posted October 9, 2012 Posted October 9, 2012 If you read this story, its been updated with the financial figures that the Independent featured today: http://skiddmark.com/2012/10/is-drb-hicom-fiddling-while-lotus-burns/ and http://www.independent.co.uk/news/business/news/lotus-has-mountain-to-climb-as-debts-pile-up-8202915.html
Martin R Posted October 9, 2012 Posted October 9, 2012 I have a horrible feeling the end is near. I know Lotus are / have always been in trouble but this feels different. I think the only hope is one of the other car makers buys it. However i think this is unlikely as if they wait a while till it goes bust they will get it for next to nothing. How ironic when people want the new Exige but they cant make any. A very very sad day if im right.
Chris_edeson Posted October 9, 2012 Posted October 9, 2012 This isnt good at all... If they went out of existance, what happens to our cars values, availability of parts? Not good things i guess?
darryl Posted October 9, 2012 Posted October 9, 2012 the same/similar report in today's evening standard, the last line however states "but the management hope to start work on the new models shortly" not sure if this has been correctly quoted
Martin 111S Posted October 9, 2012 Posted October 9, 2012 If they went out of existance, what happens to our cars values, availability of parts? Not good things i guess? If mine goes the same way as a TVR Sagaris I'd be pleased
fentuz Posted October 9, 2012 Posted October 9, 2012 If they went out of existance, what happens to our cars values, availability of parts? Not good things i guess? Similarly to the old mg, 3rd party will supply. It is already the case for most bits for elise s1
flibberflops Posted October 10, 2012 Posted October 10, 2012 I doubt very much that the company will "go out of existance" Yeah, the company may go bust and then sold for a pound or something. However, the brand to to valuable to die (Look at F1). The very fact it has new models ready to go... and a range of other models designed.... plus a newly refurbed test track means that it will be a bargain buy for someone.
TimSportsTourer Posted October 10, 2012 Posted October 10, 2012 I find this deeply troubling. It's true to say it could be bought very cheaply, but it's hard to think that it would be a great investment for anyone. They are very high overheads for a company that has sold just a few hundred cars a year. And very high debts. The tragic thing is that the cars are the best they've ever made. Bahar really did behave like someone spending someone else's money. I really, really hope that they can be pulled through it, but it's a demoralising story to read. I sooo hope they can pull this off and remain a car company, not just a brand of expensive jackets.
darryl Posted October 11, 2012 Posted October 11, 2012 God knows what the staff at Lotus cars must be thinking; has anyone read Harry Metcalfe's page in this months Evo the way i have read it the Esprit was pretty much complete under DB's time but with the arrival of COO and the rest of the DRB accountants the cull is massive and wide spread, at this rate I may put an offer in to purchase (only joking Sue; may be not!!)
JonS Posted October 11, 2012 Posted October 11, 2012 God knows what the staff at Lotus cars must be thinking; has anyone read Harry Metcalfe's page in this months Evo the way i have read it the Esprit was pretty much complete under DB's time but with the arrival of COO and the rest of the DRB accountants the cull is massive and wide spread, at this rate I may put an offer in to purchase (only joking Sue; may be not!!) You'll have more Lotus cars on your drive alone than in production at Hethel soon! Surely the problem is the fact that the cars are so easily modifyable, therefore improvements and upgrades are easier to do to older cars rather than buying a new one. this then holds the value relatively well of the 2nd hand market, but forcing new sales numbers down and then they have to hike the price up to make up for the lack of sales. Take for example me and my mates cars. Mine is a 2001 S2, now DVA'd, very good condition, well maintain, lots of nice mods and improvemnts made all over the car, etc, etc. My mate has a 2003 BMW Z4 2.5ltr with numerous optional extras and driving aids. The figures are roughly: Elise: Bought in 2007 for ~£16k now worth (who knows really!) ~£9-10k Z4: Bought in 2005 for ~£21k now worth ~£4-5k Obvioulsy you have to add in the quantity of each built having a negative effect on the Z4 value, but you have to say that Lotus' biggest success is also their biggest downfall. I really hope someone can pull them through it.
neru Posted October 13, 2012 Posted October 13, 2012 I think the current owners (Hi-Com is it?) have got it very wrong. Bahar may have been a lttle over-ambitious, however I believe they had already scaled back plans to a more conservative level wrt release schedule anyhow, prior to DBR taking over. A new Esprit was not pie in the sky, and the timing was spot on with Lotus back on the motrorsport stage, and imho doing pretty well. On paper it sounded fantastic and looked like it could genuinely trouble many of the established masters. Getting people to buy it over alternative marques may still have been in question but I don't think Lotus has been in much of a better position than it is currently wrt build quality than it is now. As such many of the fears that stopped people investing high chunks of change in their products may have been dispelled. Instead the plan is to limp along with facelifted versions of current models? That can not work in the long run. I think Lotus needs to have more of a presence than enthusiast/track day alone if it is going to survive. The Evora demonstrated Lotus can put a more every day road car in to the market place and compete with others in the price bracket, certainly in terms of performance if not in sales figures. I think the sales would have come though over time - got to remember the competition is tough there - Porsche after all. The new models shown in Paris back at the unveiling of the Bahar vision, were well positioned, acknowledging Lotus history as well as showing a good awareness of new spots in the market which were opening up - luxury performance saloons for example - see panamera, rapide, etc. The industry itself at the moment seem to be trying to get back to lighter weight, driver focused cars over flat out top speeds etc. The GT86, and plans for future versions of the MX-5 are good examples and I even thik the Golf 7 weighs in at less than the 6 if I remember correctly. Lotus is already well ahead in this area. It also is well invested in emerging tech such as Electric and Hybrid. All in all this looked like a time where Lotus needed to weather the same economic climate everyone is facing currently and push on through to deliver the brand they needed for the future. When sales pick up again it will be those leading the game who will benefit not those rolling out 5-10 year old models. I am of course no expert by any stretch and this is just my opinion, but as I think someone has already mentioned, the current thinking feels all wrong.
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