Dany Bahar, the current CEO of Lotus is reportedly looking for a buyer to purchase the company from current Malaysian parent Proton.

Given that Proton itself was recently acquired by Malaysian conglomerate DRB-Hicom, the reason for Bahar’s strategy is probably the fact that DRB has little interest investing in a small volume specialty sports car brand, especially since Lotus hasn’t earned a profit since being originally acquired by Proton in 1996.

At present, Lotus requires funding of around £500m ($790 million) for the development of future street cars, which includes new Elan, Elise and Esprit models.

So far, no offers for purchasing Lotus have been confirmed, though some sources say that Genii Capital, the international investment firm which currently owns the Lotus Formula 1 Grand Prix team, would seem the most likely scenario, though reportedly a number of Chinese companies have also expressed interest.

[Source: Auto Express]

In a deal eclipsing $410 million, DRB-Hicom purchased a 43 percent stake in Proton, a Malaysian automaker better known for its ownership of the famous British sports car brand, Lotus.

Originally, the stake belonged to Malaysia’s state-owned Khazanah Nasional Bhd. However, as Proton has not made a profit in the last two years, multiple prospective buyers stepped in for acquisition talks before the controlling stake was finally approved for DRB-Hicom, a large conglomerate with a hand in automotive services, transport, and power generation.

This investment effectively hands DRB-Hicom the control of two Malaysian car plants that are capable of producing a combined 350,000 vehicles a year. This production number may increase in the future as General Motors just reached out to Proton last month about a possible manufacturing joint venture in Malaysia so that GM could gain better access into the Southeast Asian market. The talks are not yet complete and it will be interesting to see what effects DRB-Hicom will have in the discussions.

What’s more, DRB-Hicom is also the new private owner of Lotus. Unfortunately, this change puts the future of Lotus into question. Lotus has not been able to make a profit for Proton since 1996, an equities investor suggested that all or part of Lotus would likely be sold. Among those interested in Lotus is Genii Capital, a part owner of Lotus Renault GP.

[Source: Bloomberg]

Rumors of the sale of Lotus by its Malaysian parent company Proton have increased steadily since the appointment of CEO Dany Bahar, who has done little to dissuade the rumors. Rather than a sign of instability, Proton has committed to funding the “new Lotus”, and Bahar’s actions have helped keep the small sports car maker in the headlines.

The latest rumor mongering comes from AutoCar, which quotes Bahar as admitting, “Proton could sell Lotus.” In an interview Bahar outlines three clear paths proton could take, “Proton could keep Lotus, float it off or sell it outright.”

Far from speculating, Bahar is simply spelling out reality, commenting that, “It would be quite understandable if an owner that has invested so much wanted to see a return on its investment, especially if the buyer were a major car maker that could back Lotus for the long term.”

Any return on investment won’t happen, however, until Bahar has built Lotus into a desirable company, one that makes money and one that sells cars consumers really want to buy. At last year’s Paris Auto Show, Lotus unveiled its plan for the future, with numerous new models starting with the Esprit, which is set to launch next year.

GALLERY: Lotus Esprit Concept

[Source: AutoCar]

The New Year may be just around the corner, but it’s never too early to spread some rumors. Proton Holdings is believed to be seriously considering the sale of their Lotus sports car division, a brand that has never made a profit for the Malaysian-based company.

Proton originally purchased the British sports car brand in 1996, but it seemed like a mismatch from the start. Proton specializes in manufacturing sedans and taxis in their home market while Lotus aspires to produce thrilling sports cars. Perhaps the goal was to have a more complete portfolio for Proton, but the lack of profits from Lotus has begun to take its toll.

Even with the new changes Lotus has been making – releasing the above City Car for example – it’s believed that the automaker won’t have the money to fund its future plans, which could be another reason for Proton to sell. There has been reports that China-based Shanghai Automotive Industry Corp. and Luxembourg-based Genii Capital were interested in purchasing Lotus, but both have denied those rumors.

Last year Lotus only sold 1,985 vehicles. It is estimated that they need to sell around 8,000 to turn a profit – yikes.

[Source: Bloomberg]

Lotus and its parent company, Proton, will be releasing their City Car to rival the new Aston Martin Cygnet and will be a production version of the Ethos concept originally seen at the Paris Auto Show. The vehicle will first be offered as a Proton, with the Lotus version coming at a later date with a higher price tag.

Lotus will be making additions to the car, hoping to make the electric vehicle offer performance not seen on any other small cars. It will be about $3,125 (£2000) cheaper than the Aston Martin Cygnet, so pricing is estimated to be around $45,300 (£29,000).

The Ethos Concept featured a 1.2L, three-cylinder Lotus Range Extender engine that had a peak torque of 177 lb-ft with a top speed of 105-mph.

GALLERY: Lotus City Car

[Source: Topspeed]

General Motors is reviving negotiations that were scrapped back in 2007 with Lotus parent company Proton Holdings, Malaysia’s biggest auto manufacturer. Both brands are looking to form a manufacturing venture in the Southeast Asian country.

A collaboration between the two parties would probably be mutually beneficial, with GM getting access to Proton’s production in Southeast Asia while Proton would be able to take advantage of GM’s technologies to boost their exports.

Proton Holdings is a government-linked company (GLC) with the majority of its equity owned by a government-owned company named Khazanah Nasional Berhad. Ever since an unsuccessful relationship with Mitsubishi ended in 2004, the Malaysian government has been seeking a partner for Proton.

[Source: Bloomberg]

Amidst all the sexy and exciting sports cars Lotus unveiled at the Paris Auto Show last year, tucked away in a back corner was the Emas Concept. A small city car, it was perhaps the most likely of the concepts, combining the automaker’s talents for light weight vehicles with nimble handling, wrapped up in an affordable package that could produce real volume sales and bring Lotus to profitability.

Well, it seems that along with plans to move nearly all the other concepts into production, Lotus will push ahead with the Emas concept, naming it the Ethos and bringing it to market in 2014. Built in cooperation with parent company Proton, the vehicle itself will likely be built in Malaysia, with Euro-spec models receiving their finishing touches at the Lotus plant in Hethel.

Sales are expected to reach 1500 to 1800 a year for the Lotus model, a small number indeed, but one that would certainly give a big boost to overall Lotus sales. According to Lotus CEO Dany Bahar, the Ethos will be either an electric car or a hybrid. Either way, it will be a true Lotus in terms of its handling and fun-to-drive capability. Look for pricing around £30,000 – roughly $50,000.

In addition, Lotus is planning to build its own 4.8-liter V8 for the Esprit with as much as 570-hp. That same engine could also be halved to form the basis of the next Elise motor, displacing 2.4-liters.

GALLERY: Lotus Ehtos

[Source: CAR]

And as such, he is planning to appeal the ruling and eliminate the confusion: “it is inevitable that the similarity of the names Lotus and Team Lotus will cause confusion not only amongst F1 supporters and the wider public,” he said, “but also amongst F1 commentators who use the word ‘Lotus’ interchangeably for both teams.”

We hope this plays out with a clear winner on top, because what’s the plural of Lotus, anyway? Loti? Lotusesses?

During a recent interview, Bahar mentioned that he wanted to bring Lotus up to Porsche-killing standards, and in order to do so, he would have to leave Proton behind and shack up with a bigger sugar daddy, one capable of treating Lotus right. That company, he suggested, was Toyota: given Lotus’s now-tradition of using their engines, it only made sense.

But according to Bahar himself, “Proton has played, and continue to play, a crucial role in our development.” His vision for Lotus’s five-year plan includes Proton every step of the way, including Proton’s help in securing funding for Bahar’s next two-door/mid-engined/aluminum-spaceframe sedan/SUV/Cayman-killer GT/track-ready city car project.

“We have an incredibly strong relationship with Proton, they support us 100 per cent and frankly this is really important for a company like ours,” said Bahar.” Part of the business plan is the joint development of a global small car platform meaning that for the first time in the Proton Lotus history, the relationship will be mutually beneficial. This alone should demonstrate how close we are.”

Let’s hope that pre-nup’s still valid.

Lotus CEO Dany Bahar has made numerous changes to the storied British brand since he joined the company in 2009 and he’s not done yet. In a recent interview he made known his desire to see Lotus split off from its current Malaysian owner Proton, in search of a major global automaker – like Toyota.

According to Bahar, Lotus will need a partner in order to offset the cost of meeting strict new emissions ratings and crash tests. If a partner can’t be found, Lotus could look at spinning off into a private company with publicly traded stock.

Rumors of a tie-up with Toyota are only too easy to generate with both automakers sharing a long-term partnership, with Toyota supplying engines in cars like the Elise since 1994.

Bahar’s plan is to build up Lotus as a serious rival to Porsche, with total sales reaching anywhere from 6,000 to 8,000 units annually by around 2015. In order to achieve this significant growth Lotus has already unveiled its New Era plan to develop several new models including a new Elise, an Esprit and even a possible city car, among others.

According to a report by Inside Line, the company is developing a new aluminum tub to be shared across these models, which weights 220-lbs less than the 520 lb one used in the Evora.

[Source: InsideLine]

Lotus, a company best known for producing great sports cars like the Elise and the iconic Esprit, is about to head into a whole new direction.

While it will continue building sports cars, Lotus CEO Dany Bahar has announced that in October, 2013 the company will produce its City Car, which was shown as a concept at the recent Paris Auto Show.

This new car will be jointly developed by Lotus and its parent company Proton, along with a mystery OEM car company. Bahar went on to say that “We will build three versions: one for the Asian market, one for Europe and a sporty one.”

No exact specification details are known at the moment, however the City Car concept had a 1.2-liter, 3-cylinder engine with hybrid drive technology.

While Lotus will continue its sports cars side of the business, which in the next few years will launch models like the all new Elise, Elan and Esprit, Bahar said that in order for the company to become profitable, it needs to expand its business portfolio.

Bahar told CAR magazine that “Over the past 15 years, Proton has had no profit at all from Lotus. They decided to sell it or give it another chance.”

Let’s hope their new business plan works and enable them to stay in the business of making exciting cars for years to come.

[Source: CAR]

Malaysian car company Proton, which normally only makes boring econo cars, is set to make some vehicles that will excite enthusiasts. However, these cars aren’t exactly Proton originals.

First up is the Lekir, which is essentially a Lotus Europa dressed up in re-altered clothes. Lotus (which is owned by Proton) had recently discontinued production of the unloved Europa in favor of the new Evora, so it can easily start building its old model for its parent company. This will allow Lotus to sell more vehicles and will in return bring in some much needed enthusiasts to Proton dealers. Also, since Proton has a much larger international distribution network, the Europa could finally see the success it never had.

When the Lekir hits the showroom, it will feature either a 1.6-liter pr 2.0-liter turbo charged four-cylinder engine, the latter producing about 220-hp.

Want a Proton that is more practical yet still fun to drive? How about their new Inspira Jebat.  This model is clearly based on the Mitsubishi Lancer Evolution, also in slightly altered clothing. Proton buys a lot of its technology from Mitsubishi and has reproduced its models for its local market for years. However, Mitsubishi has never let anyone else ever copy or reproduce their Evolution models, so this move clearly shows the growing relations between the two companies.

The Jebat concept, which is currently being displayed at the Kuala Lumpur International Motor Show, is powered by a 2.0-liter turbo charged four-cylinder motor, producing 237-hp.  That is enough to propel it from 0-62 mph in just 5.6 seconds and onto a top speed of about 144 mph, according to Proton.

Both the Lekir and Inspira Jebat are currently being shown as concepts, but if their local market bugs them enough, these aging Lotus and Mitsubishi models might just get a new lease on life.