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Lotus Taking New Approach to Growth: Practicality

New chief Gales pushes pragmatic approach to recovery.

by on Nov.26, 2014

Lotus recently celebrated its 1,000th car earlier this month. The company is taking a common sense approach to recovery.

The ongoing saga of Lotus is taking on a new twist: practicality.

It wasn’t long ago that the specialty carmaker boasted about plans to introduce several new models. However, the company has fallen on difficult financial times and seen a change at the top with Jean-Marc Gales taking over for the brash and confident Dany Bahar.

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In a departure from Bahar’s grand plan of multiple new models, Gales is prescribing a dose of pragmatism to help guide the company out of its tough times. Earlier this year, Lotus said it was going to cut as much as 25% of its global workforce as it figured out what to do next. (more…)

Debt Mounting, Lotus May Delay or Drop Some Planned Models

New Esprit, other projects in trouble.

by on Oct.15, 2012

The eagerly-awaited Lotus Esprit could fall victim to the company's mounting financial problems.

No manufacturer likes to see its name linked to a recall.  But a minor headache for a maker like General Motors or Toyota can turn into a migraine for a cash-strapped company such as Lotus that is already struggling to keep its product development programs funded.

The numbers are modest – just 80 Evora S models sold last year could be subject to engine oil leaks or fires – but it is the latest in a series of mounting problems that face the maker’s owners and raise growing concerns that Lotus will have to abort an ambitious product development program designed to transform it into a series player in the global sports car market.

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Both the much-awaited Lotus flagship, the Esprit could be in trouble, according to numerous industry sources, while other projects have been slowed as the British maker tapers back on the bold, 5-product launch plans it revealed during a show-stopping news conference at the 2010 Paris Motor Show.

Lotus owner, the Malaysian-based DRB-Hicom, is now facing legal action on the part of unpaid suppliers due a reported $40 million.  The owner of the British-based maker is now asking U.K. authorities to lend a hand by delaying upcoming tax payments.