Poor Lotus. The company that just wants to make cool cars is still caught in the middle of a corporate acquisition that threatens the company’s existence one day and reassuringly cooes to it the next.

At least the latest suggests that the company has a stable future ahead, though for how long nobody can say. The tumultuous story started when Lotus’ parent company Proton was taken over by DRB-Hicom. Since then, production shutdowns and uncertainty have characterized the British automaker’s status.

Last week, a DRB-Hicom executive stopped by the Lotus headquarters to reassure employees of their future. It seems the due diligence that sparked this uncertainty to begin with is still in progress, but that financial support will continue during the process.

Development on new models is moving forward for the company and the 60-day production halt is over. Lotus was a key asset in purchasing Proton according to DRB-Hicom. The company has been in a holding pattern for quite a while, which is damaging to business, but it doesn’t look like anything will change until change drastically until the company comes to a final decision about Lotus.

Lotus‘ Malaysian owner DRB-Hicom is seking a Chinese buyer for the brand as recently as last night, flying in the face of information included in the automaker’s much-publicized “rant” press release from April 12.

According to British Member of Parliament Richard Bacon, the news emerged just before a parliamentary debate meant to discuss Group Lotus’ future and the 1,200 British jobs consequently concerned.

In the April 12 release, Lotus said that it had no indication from DRB-Hicom that it would be put into administration, but that the new owner was performing its due diligence. While administration and being put up for sale are two completely different things (administration refers to a company being run by an external, independent source), it would seem like a logical assumption that selling the company would be even further form the horizon.

Then again, maybe not. The release said due diligence was being performed — not that it had been completed. It’s conceivable that during said review, a sufficient list of issues emerged to make Lotus seem like a poor choice to keep on board.

Bacon also said the debate aimed to counteract exactly what seems to have happened in the hope of saving the jobs Lotus provides. It’s difficult to know exactly what this means for the marque, but it hasn’t sold yet. Should that happen, it could signal an era of new Lotus vehicles, or just its absorption into a Chinese automaker’s automotive technology vaults.

Finally, it’s important to remember that DRM-Hicom hasn’t made an official statement about the sale yet. Nothing has actually happened and there won’t be a sale without a buyer.

[Source: Autocar]

Earlier warning signs were brought to attention this year when Lotus’ Malaysian parent company Proton sold a controlling stake to another Malaysian conglomerate, DRB-Hicom. As per Malaysian law, Lotus had to halt all business operations and freeze its financial accounts during the 60-day transition period.

The 60-day period ended in March and now, new owner DRB-Hicom is currently conducting the due diligence of Group Lotus, investigating worrisome figures including Lotus’ $320 million in accumulated debt.

Due to the mounting concerns, rumors have spread that Lotus may be put into administration to free itself from debt and that even CEO Dany Bahar has been let go from the company. What’s more, in line with our reports earlier this year, Chinese automaker Zhejian Youngman Lotus Automobile (Youngman) is a potential buyer of the brand, placing a bid on its remaining assets, including naming rights. The official importer of Proton and Lotus cars in China, Youngman is perhaps better known for its past failed attempt to purchase the now defunct Saab.

So far, a Lotus spokesperson has denied these rumors and insisted that DRB-Hicom and Lotus executives are working to keep the business running as usual, ”There have been and continue to be positive discussions between Group Lotus senior management and senior management at DRB-Hicom both here in Hethel and in Malaysia. Despite various rumours in the media to the contrary, at no point has DRB-Hicom indicated to Group Lotus that they intend to put the company into administration and we welcome the opportunity to put that rumour along with incorrect speculation that production has stopped, that Dany Bahar is no longer CEO and that we are no longer involved in F1 to bed.”

The spokesperson adds, “It’s no secret that we are going through a very difficult time at the moment due to the change in ownership but we’re doing everything we can to get through this period and come out the other side stronger than before.”

Optimistic words, but something definitely isn’t right in the house of Lotus. Stay tuned for more information as the situation continues to develop.

[Source: AutoCar]

Despite terminating its title sponsorship deal with Group Lotus, Lotus is committed to keeping its name in Formula 1 for the imminent feature. Confused? You should be.

Group Lotus was recently sold by Proton to Malaysian automotive corporation DRB-Hicom, causing Lotus F1′s team owner Genii Capital to end its formal relationship with Lotus. Just a week ago, we reported that Proton might be interested in acquiring Team Lotus F1, but that appears to be off the table now.

Despite the end of the Group Lotus sponsorship, Genii owner Gerard Lopez remains committed to the Lotus name. Lopez has recently agreed to a deal for title sponsorship on the F1 team, something he originally put together back in 2010, but that has been canceled and Proton’s option to buy 50 percent of the team has also been removed.

“We are happy to carry the Lotus name as we believe it is a good name for F1,” Lopez explained in a recent interview with Autosport. “We funded the team last year and the year before for whatever delta was missing. We would prefer to have sponsors up to the full amount – but if we have to fund it then we will fund it.”

Sponsorship deals that Genii had secured included Unilever and Microsoft, two companies that were arguably game changers in F1. Lopez also elaborated that buying Group Lotus isn’t entirely out of the question yet, but the organization would like to know what the new owners plan on doing with it.

[Source: Autosport]

 For the first two races of the 2012 Formula 1 season, Team Lotus has received a mixed bag of results. Formula 1 World Champion Kimi Raikkonen finished both races in the points despite mediocre qualifying. Meanwhile, GP2 champion Romain Grosjean displayed rapid pace during qualifying but suffered a DNF for both races.

Such is the mix of fortunes in motorsports. A long and illustrious name in Formula 1, the Lotus F1 team withdrew from the series in 1994 and only returned in 2010. However, while Syed Zainal Abidin Tahir, managing director of Lotus parent company Proton, and Lotus CEO Dany Bahar are both appointed team board members, ownership of the F1 team in fact belongs to Luxembourg-based private equity firm Genii Capital. Now, between Lotus and Genii Capital, the future of the team is up for grabs.

A precarious situation, Genii Capital may even consider to buy out Lotus itself if the sports car manufacturer struggles to break through in its production car operations and continues to suffer heavy losses. To note, Lotus made a £21.4 million pre-tax loss last year while Proton’s profits have begun to show a trend of decline. In January, the Malaysian government sold its 43% controlling stake of Proton to DRB-Hicom, a Malaysian Corporation involved in the automotive manufacturing, assembly and distribution industry. Genii Capital chairman Gerard Lopez has previously exchanged with DRB-Hicom on the possibilities of selling Lotus. Lopez said,”If there is a way that we think the company can be bought and run successfully, then of course we would be interested.”

Despite the financial obstacles, Lotus and Proton remain true to their racing commitments. Lotus spent approximately £25m annually to sponsor the F1 team that bears its name and parent company Proton also supported the team an estimated £34m to satisfy debt obligations concerning secured loans with Renault and bankrupt Lithuanian bank AB Snoras. Also, more than having members on the team board, a signed call option agreement with Genii on February 3rd entitles Proton the right to purchase a 50 percent stake in the team to become majority shareholders. Proton has yet to execute the option but this may only be a matter of time.

We will learn more as the negotiations progress and as the Formula 1 season unfolds.

[Source: PitPass]

It’s hard out there for a sports car manufacturer, especially if it is owned by a larger company.

Lotus has been owned by the Malaysian car company Proton since 1995, when the company was bought from the then bankrupting Bugatti (which itself got eventually bought out by VW).

Over the last 17-years, Lotus has not made a profit for its parent company. That was not such a big deal since Lotus was seen as more of a high-class brand name for the Malaysian state-owned Proton. However, just earlier this year, Proton sold its 42.7% stake in Lotus to DRB-Hicom, one of the largest private companies in Malaysia. Generally, private companies are much more concerned with making a profit rather than owning a company just for its prestige.

Now word comes from Lotus CEO Dany Bahar, that the future of Lotus’ production is in jeopardy, as development for new models like the updated Esprit have been suspended. In fact, Bahar was “completely taken aback” when he learned at the Geneva Auto Show, that the entire Proton group would enter a three-month “lockdown.”

That means, only normal trading activities would be allowed, hence all future developments have been suspended. This lockdown will even effect its recently announced models like the Exige S and the Evora GTE. The new Esprit will now likely be pushed to a 2014 launch, which means the concept would be nearly five-years old when it hits the road.

That is, if DRB-Hicom even decides to keep Lotus. Rumors suggest that they will want to off-load the unprofitable Lotus brand, which means Bahar has to find a savior for Lotus very quickly.

For now, Lotus’ motor sport activities, the opening of their new showroom on Regent Street in London, and its participation at this years Goodwood Festival of Speed as the featured marque will continue. Let’s hope Lotus can survive through its current dilemma.

GALLERY: Lotus Esprit

[Source: Evo]

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]