Lotus Beating The Gloom Of The Recession

[Mark H]

Lotus beating the gloom of the recession

 

SHAUN LOWTHORPE

 

Last updated: 15/09/2009 06:00:00

Norfolk car firm Lotus is bucking the trend of doom and gloom in the economy by stepping up production of cars and taking on hundreds of new workers - new figures reveal today.

 

The Hethel-based car firm has seen a 30pc increase in its manufacturing workforce and has earmarked more than £20m for product investment in 2009/10 to fuel continued growth - bringing total investment close to £60m in the last two years.

 

To cope with this demand, Lotus has recruited 150 extra staff over the last six months.

 

Lotus is among the companies signed up to the seven-month “World Class: Normal for Norfolk” campaign to promote the county as a great place to do business.

 

And the buoyant growth is in stark contrast to the situation facing the car industry worldwide and comes as customers are all set to receive the first deliveries of the new multi-award winning Lotus Evora - with the firm having enough orders on its books to guarantee five months of work.

 

Yesterday business secretary Lord Mandelson urged European regulators to ensure that the future of the UK's Vauxhall plants was not placed at risk as a result of a "political fix" following the sale of General Motors' European operations to car parts giant Magna.

 

The deal, which is backed by the Russian Sberbank, has left the Vauxhall workforce concerned that the Ellesmere Port and Luton plants will close.

 

Luke Bennett, director of Lotus Cars, said: “We must be one of the few car companies in the world that is increasing production and recruiting staff to support increased demand for its products.

 

“Lotus has not been immune from the effects of the global economic downturn, but fortunately we are better placed than most due to the timely launch of the new Evora.”

 

In the last financial year the company increased its sales by 2pc to £111m in the face of a challenging market. A major contributor to sales growth was Lotus Engineering, the high tech engineering consultancy, which increased sales by 23pc despite the curtailment of new product plans by clients in the automotive sector.

 

Planned sales of the Lotus Evora for 2009/10 are in excess of 1200 with the production rate reaching 10 cars per day by the end of November.

 

Future investment will focus on production of an automatic version of the Evora for 2011, while Lotus Engineering will be looking at research in areas from hybrid car engines to lightweight vehicle structures and super-efficient internal combustion engines where Lotus is recognised as being a world leader.

 

Next month will see new chief executive Dany T. Bahar, a former senior vice-president at Ferrari joining Group Lotus plc as its new chief executive, replacing Mike Kimberley.

 

And the company believes its strong management team, backed by investment and a robust strategic business plan, means it is better placed than many to capitalise on the rapidly changing automotive market.

 

Chris Starkie, chief executive of the county's economic development partnership Shaping Norfolk's Future, welcomed the news.

 

“Lotus is a world-class engineering and automotive business and it's really exciting that the company is investing in growing the business,” he said. “It's clear that despite the overall market for the automotive industry remains difficult, a niche and innovative business like Lotus is able to continue growing by having the right skills and right products.

 

“It's a testimony to the world class pedigree of the firm that it's able to attract a new chief executive from an iconic firm such as Ferrari.”

 

Paul Newsome, managing director of Lotus Engineering, said: “I am delighted with our sales growth which stems from developing new markets, growing the existing client base and focussing on green technologies, specifically those that are aimed at reducing CO2 emissions of vehicles.

 

“Lotus is unique in the automotive industry, not only as a manufacturer of vehicles both for itself and third parties, but also providing engineering consultancy services to other car companies around the world.”

 

Viewers can see the first in a series of TV adverts to promote the World Class Norfolk campaign today.

 

The first advert is due to appear at 1.52pm today, with others at 6.45pm, and 11.05pm. The adverts, which will be shown to viewers in the region and in the London area, are among 40 commercials promoting the county which will be screened between now and the end of the month during primetime slots including Coronation Street, The Bill, and this Saturday's James Bond premiere Casino Royale on ITV 1.

 

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