Lotus blasts rumours of demise

Lotus blasts rumours of demise

12/04/2012 in News, All News, Car Manufacturer News

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Lotus blasts rumours of demise

Lotus has hit back at reports in the media that it is heading for administration and its group chief executive Dany Bahar has left the business.

In a statement to the media, Lotus admitted that the company is going through a “very difficult phase” but is showing “true fighting spirit every day in trying to keep this vision alive”

Bahar is still Group Lotus CEO and Dato’ Sri Syed is still managing director of Proton.

Rumours over Lotus’ future were sparked in March following the Malaysian government’s decision to sell its 42.7% stake in its Lotus-owner Proton to automotive manufacturer DRB-Hicom for £261 million

At the time, Bahar admitted to performance car magazine Evo he was “taken aback” by the announcement by the Malaysian government and product development would be put on hold.

DRB is currently in a due diligence window and it is yet to decide if it will retain Lotus as part of its Proton acquisition or sell it off.

Here’s is Lotus’ extraordinary press statement in full:

Never let the facts get in the way of a good story….

Take a little look at what we found online. Don’t you think it’s funny? We do. We had a good old giggle. After all, we love a bit of self irony, just as well really. Although it’s funny, this one’s not accurate but then again, why let the facts get in the way of a good story? The inconvenient truth is – surprise, surprise – we have never said that there are no problems at Lotus.

So whilst lots of people obviously feel the need to comment on Lotus’ current situation in the absence of proper facts or evidence, we can’t ignore these particular mistruths any longer even if we would like to, so we have decided to turn a negative into a positive and use this hilarious piece of ‘art’ to set the record straight regarding the status quo at Group Lotus and try to return a little stability to a fast changing situation.

False rumour #1: Dany Bahar is no longer CEO of Group Lotus.
Fact: Rubbish – Dany Bahar still is.

False rumour #2: Dato’ Sri Syed is no longer Managing Director of Proton.
Fact: Again rubbish. He still is.

And whilst we’re on the subject of jokes - do you know the latest F1 joke? Mike Gascoyne, Caterham Group’s Chief Technical Officer, has gone missing. Why? He’s looking for the 30 to 40 points he predicted for the last F1 season. Funny.

Speaking of F1: It seems that one special so called ‘independent’ source is at the root of the lion’s share of damaging rumours and misleading stories. The delightful Joe Saward which leads us nicely to….

False rumour #3: Joe Saward is JUST an independent journalist.
Fact: He is an active Director for the Caterham Group.

And unlike some, we don’t want to get too personal, so we’ll leave it to you to judge how ‘independent’ his stories about Lotus are.

False rumour #4: Group Lotus is no longer involved in F1.
Fact: Lotus F1 Team and Group Lotus have reshaped their commercial relationship earlier this year. The new governance agreement signifies the continued commitment of Group Lotus to the team and the sport.

Group Lotus’ branding and marketing rights and subsequent activities remain unaffected by the new agreement until at least 2017. Alongside continued branding and title partnership status, Group Lotus is also the exclusive master licensee for all Lotus F1 Team merchandise.

The new agreement was reached following Group Lotus owners Proton providing team owners Genii with a £30m loan which is repayable within three years. In order to secure the loan Genii used 100% of the F1 team’s assets as collateral meaning that under the conditions of the loan agreement Proton have been given full title guarantee to all plant, machinery, show cars, computers, office and the Lotus F1 Team headquarters.

In addition Proton retains the rights to purchase 10% of the F1 team. Another 10% share option will be activated if the team default on their loan obligations with Proton.

Again we leave it to your judgement how ‘bad’ Lotus’ current situation in F1 is. And speaking of bad situations…..

False rumour #5: Group Lotus is going into administration.
Fact: Rubbish. The takeover of our parent company Proton by DRB-HICOM couldn’t have come at a worse time, but up until that point Proton was (and still remains) fully committed to our five year business plan to create jobs and to expand the factory and business. With the takeover process the funding has been restricted and DRB-HICOM is taking time to understand what to do with the business. DRB-HICOM is currently in the middle of due diligence of Group Lotus and there have been and continue to be positive discussions between Group Lotus senior management and senior management at DRB-HICOM both here in Hethel and in Malaysia. At no point has DRB-HICOM indicated to Group Lotus that it intends to put the company into administration. The over-active rumour mill is seriously damaging our business reputation, image and credibility but it is what it is.

The simple fact is, and we haven’t denied this - Lotus is going through a very difficult phase at the moment but we are showing true fighting spirit every day in trying to keep this vision alive. This is also a fact – no matter what people outside of Lotus may say or tweet or blog.


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Lotus

It has been uncertain time for Lotus dealers. The Norfolk sports car brand is axing its entire European sales network and rehiring new partners as part of an ambitious relaunch which aims to put Lotus on a par with Aston Martin and Ferrari.

Lotus has a long and glittering history, but the company has shrunk to a fringe player in recent times.

While Porsche has powered ahead to become a sports car juggernaut selling 100,000 cars a year, little Lotus sold 2,745 cars worldwide in the past year and just 577 of those were in the UK.

But a new management team has swept into power, in autumn 2010 announcing ambitious plans to turn Lotus into a world-class player.

Instead of producing just the back-to-basics Elise, associated spin-offs and the Evora, new chief executive Dany Bahar wants to launch a range of five sports cars to take the fight to the supercar aristocracy.

In June 2012 Dany Bahar was dismissed as Group Lotus chief executive by new owners DRB-Hicom following an audit into the running of the company and an unspecified complaint against him.

Aslam Farikullah was appointed new Lotus CEO.

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