Fired Lotus CEO Bahar seeks $10.6 million for wrongful dismissal
KUALA LUMPUR (Bloomberg) -- Dany Bahar, fired as CEO of unprofitable British sports car maker Group Lotus in June, filed a claim against the company and its Malaysian parent, DRB-Hicom, for wrongful dismissal.
Bahar is seeking 6.7 million pounds ($10.6 million) from Lotus for alleged unlawful early termination of his employment, DRB said in a Kuala Lumpur stock exchange filing. The company's lawyers in the UK were notified of the claim on Aug. 23, it said.
"Dany Bahar was dismissed after an investigation into his stewardship of Lotus," DRB said in the filing, without being specific. "We believe we have acted properly at all times," it said, adding that DRB and Lotus would "vigorously" oppose and defend the claim.
DRB, controlled by billionaire Syed Mokhtar Al-Bukhary, is tightening its grip over Lotus after inheriting the British company through its purchase of Malaysian taxi-and-sedan maker Proton Holdings.
Bahar was fired from Lotus following a complaint from DRB about unspecified concerns over his conduct, the UK-based auto manufacturer said on June 7.
Bahar joined Lotus as CEO in 2009 after being recruited from Ferrari, where he was a senior vice president.
In 2010, Bahar spearheaded a five-year turnaround plan for Lotus to increase sales in emerging markets -- especially China -- and introduce five new models, starting with the Esprit at the end of 2013, according to Proton's annual report for the year ended March 31, 2011
Bahar said in December it could break even by 2014. Lotus sold 1,985 units during the year ended March 2011, according to Proton's annual report. That compares with Ferrari, which boosted global deliveries by 9.5 percent to a record 7,195 cars during 2011, led by sales in the U.S. and China
Lotus, the maker of Elise sports cars, has struggled to compete against Porsche and Ferrari in Europe, and has hung on to relevance in the auto industry partly because of its decades-long expertise in designing lightweight frames.
The Lotus Elise, at 2,010 pounds (912 kilograms), is the lightest performance car sold in the United States, according to California-based Edmunds.com. Tesla Motors has relied on Lotus chassis designs since 2008 for its Roadster sports car.
Bahar joined Lotus as CEO in 2009 after being recruited from Ferrari.
DRB and Lotus will file counter-claims against him, DRB's announcement said.
DRB said in March it may sell Lotus if it doesn't meet performance targets, but then said in May it has decided against selling the British carmaker.
DRB announced a 64 percent drop in first-quarter earnings to 32.6 million ringgit. This was due to higher finance costs related to its Proton acquisition and continuing losses at its Lotus unit, it said in a separate exchange filing on Sunday.Contact Automotive News