Quote:
Originally Posted by MrBonus
Hasn't Lotus been in financial trouble for what seems like ever?
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From what I understand the engineering firm has always done great.
The break-off company assigned to making actual cars (
starting with the Elise) was doing well until 2008 when like everyone else the bottom fell out of their world.
I would have thought that in the current economic climate they would be doing great. However the purse strings seem to be in a tangle.
EDIT:
Future of Lotus in "significant doubt" after £170m loss
11/01/2014
http://www.pitpass.com/public/print_article.php?fes_art_id=50718
Quote:
There is a long-standing joke in the motor industry that Lotus stands for 'Lots Of Trouble Usually Serious' and that couldn't be a better description of its financial predicament....................................... ..........
In 2013 it laid off 201 staff and burned through £2.6m of its cash reserves leaving it with £15m. Some of the most badly hit were its suppliers which include tool manufacturers, haulage firms and raw material providers. Last year the company's creditors were paid an average of 155 days late up from 154 in 2012.
Despite its financial predicament, the car company has been investing in the future and last year its research and development costs came to £96.2m which alone was more than its entire revenue.
"Lotus Cars will focus on maximising sales of its current Evora, Exige and Elise offerings which will be further enhanced by future variants," says bin Ibrahim adding that "the substantial investment needed to implement the strategies will impact the financial position of the group in the short term but once the transformation has taken shape, the group will be on a much stronger footing operationally and financially." Time will tell whether that happens.
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The article doesn't come out and say it, but as others in this thread have hinted, Lotus would have been better off using other people's engines. I suspect most of this research spending is on the new engine.