Geely Buys Stake in Lotus Cars, Fans Can Expect Great Outcomes
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Lotus has been built as one the successful racing cars and beautiful road cars. Even those brilliant four-wheeled creations Lotus has seen tough times in its course. It has changed ownership many times, last time it was in the hands of Malaysia’s Proton, with the promise of renewed investments which failed to materialize. Now Geely is in the deal to get a win-win result with the purchase of 49.9 percent of Proton and 51 percent of Lotus from DRB-HICOM Bhd (DRB) of Malaysia. Agreement is expected to be signed by mid-July 2017. Lotus has once been owned by General Motors and at another time by the businessman who brought back Bugatti from the edge of its death.
Geely can be trusted upon to take care of Colin Chapman’s brainchild as it has been investing a lot of money into the development of Volvo since it bought it from Ford Motors in 2010. Volvo has seen some great models since it was purchased by Geely. This give hopes for Lotus as well.
This agreement lays the foundation for a wider framework for both Geely Holding and PROTON and Lotus to explore joint synergies in areas such as research and development, manufacturing and market presence. Geely is supporting the transformation of PROTON and Lotus with the expertise and resources within the Geely Group. Both parties aim to build PROTON into the most competitive brand in Malaysia and a leading brand in South East Asia.
The Win-Win Scenario
The stake in Proton opens up the south-Asian market for it, also, Geely will have the access to Lotus Engineering. Lotus Engineering is a sister company to Lotus Cars that provides as a consultancy for other car-makers. Geely gets to access the know-how and apply the knowledge to its own range, Lotus engineering’s knowledge of building lightweight materials and architecture, vehicle handling and suspension optimisation, efficiency, and electronics. The company has contributed to the development of many cars on our roads. Lotus provided the chassis for the original Tesla Roadster.
In return for this Lotus gets cash for the development of its own lineup, which means a lot of new models. Proton had promised to give Lotus new models and that is why it unveiled 5 concept Lotus models at the 2010 Paris Motor Show. Dany Bahar, Lotus’ in charge at that time had strategized to use Lotus heritage to channel cash into the company. He opened many merchandise shops around the world.
Bahar was replaced by Jean-Marc Gales as CEO and company saw some improvements under his tenure along with finally relaunching the Evora in the US last year. All the hopes are set on Geely this time looking at its track record with Volvo. It is even possible to see one of the five Lotus concept cars demonstrated in Paris in 2010 to come to reality.
It definitely is a good news as Geely will be a trustworthy partner to the hugely-admired Lotus.