JOSHUA DOWLING July 26, 2012
Wildly optimistic new model line-up is shelved, according to overseas reports.
Troubled sports-car maker Lotus has reportedly had its ambitious expansion plans axed in the wake of new company ownership and the departure of its controversial boss Dany Bahar.
The British sports-car maker has faced financial difficultly after its much anticipated Evora – intended to be a Porsche 911 rival even though it was powered by a Toyota V6 – failed to reach sales expectations since going on sale two years ago.
Lotus was sold by Malaysia's Proton to automotive investment firm DRB-Hicom at the start of the year.
Autocar UK magazine has reported overnight that the Lotus Group has submitted a new business plan that "significantly scales down its previous ambitions under sacked CEO Dany Bahar".
Citing banking sources, the business media in Malaysia claims a "much more realistic" business plan has been filed with Lotus's six creditors.
Bahar attracted criticism when he announced bold expansion plans at the Paris motor show two years ago.
The plan was to introduce five new models in the next three years, ambitious by any measure. But now it seems the car maker doesn't even have enough cash to justify an appearance at this year's Paris auto salon.
Autocar sources described Bahar's plan as "basically unworkable".
Lotus and DRB-Hicom have not commented on the Malaysian reports.
Autocar reports that four of the five planned sportscar will be axed, but the Esprit may survive as much of the development work had already been done.
The magazine has reported that there is already evidence of cutbacks, claiming that 50 contractors working on future models have been laid off.