We've reported several times on the potential future of Lotus Cars . The company founded by Colin Chapman hasn't exactly had much luck financially. In fact, its current parent company, DRB Hicom, was forced to sell it to the Chinese giant Geely after competing—at least in rumors—with the PSA Group. Yes, the company that controls Volvo ultimately won the bid, but with Lotus's integration into Geely, things are looking interesting for the British firm.
The first thing Geely's CEO wants to do is make Lotus Cars profitable again . Things aren't easy for the small British brand, which has been losing money for over 20 years. The first step Li Shufu is considering to alleviate the company's high production costs is to move some production to China . This is exactly the same move Volvo has made with the production of its new S90 sedan.
This decision , while controversial at first glance, shouldn't affect Lotus Cars' performance or sporting image . It's worth remembering that Geely has been able to improve Volvo's positioning and image with similar measures, without any negative impact on financial results or sales. Norfolk will remain the nerve center for the designs and technology that will power future Lotus models, but its production will be significantly more cost-effective.
According to Li, both Lotus and Proton "will experience new technological trends including electrification," and he also added that
“The deep understanding of the region that we will gain with Proton and Lotus through this transformative partnership, along with our technological expertise and innovation leadership, opens the door for Zhejiang Geely to become a major player in the Asian market ” […] “We will work together to further strengthen most of our strengths”
For now, Lotus will not move production to China , but Geely will have to present dates and deadlines for carrying out this relocation at some point. We'll have to see how things develop.
Source – Bloomberg
