Lotus to Terminate Entire European Dealership Network

[gingervette]

Report: Lotus terminating entire European dealer network

 

by Chris Shunk (RSS feed) on Jul 8th 2010 at 5:32PM

Not the shape of Lotus things to come? – Click above for high-res image gallery

 

Lotus plans to reinvent itself, and in addition to a range of new products, a dealership makeover is in the cards. PistonHeads reports that Lotus CEO Dany Bahar sent out a letter to the company's European dealers informing them that their contracts will be terminated as of July, 2012. Why the long notice? The company's current contract with its dealers stipulates that Lotus must give two years notice prior to contract termination. The move will likely result in many dealers losing their ability to sell Lotus' wares, but current dealers will reportedly be given the opportunity to re-apply for a new contract.

 

Back in June Lotus announced to the world that it was entering the "Dawn of a New Era." Lotus has reportedly been spending its time and money picking up ex-Ferrari, Porsche and Aston Martin employees in an effort to build up its brand as a high-performance luxury make.

 

 

 

This rather surprises me as I thought Europe was a good market for Lotus vehicles? I know they don't sell well here in the states.

[t.]

They shift a fair few over here but nothing I would call monumental. Good luck to them though, interesting to see what they have in the pipeline. They've always been one of the worlds finest chassis makers.

[Camel]

Hopefully this will work out well for Lotus and we'll see many more fine cars in the future. I just hope they don't move away from what they are doing now and where they came from.

[Car Freak]

I'm sure you guys must know the full story behind this right?

 

Lotus is planning a radical shake-up of its heritage as it pushes upmarket to take on Porsche' date=' Ferrari and Aston Martin[/b'] as part of what it is calling "the dawn of a new era".

 

The radical restructuring includes dropping founder Colin Chapman's 'lightweight and simple' ethos for all new cars, instead using more complex, more expensive and more upmarket manufacturing techniques.

 

However, its current range is expected to survive for now - with only the new models adopting the company's radically altered philosophy.

 

While Lotus has refused to divulge its vision for the company's future until the Paris motor show in September, company owner Proton has held a briefing in Malaysia outlining its plans to make Lotus profitable within five years. Lotus has not made a profit for Proton since it bought it in 1996.

 

Proton and Lotus chairman Datuk Mohd Nadzmi Mohd Salleh outlined the company's plans to build cars under a new motto, "Tomorrow’s luxury sports car, today".

 

The average car will cost £80,000-£110,000, the prices being justified by the use of technology including seven-speed twin clutch transmissions, active aerodynamics, continuously variable dampers, hybrid and range extender systems, heads up displays, and the option of more alternatively-fuelled variants.

 

Under the plan, Lotus plans to raise sales from the current 2000-25000 cars a year to 6000-8000 within five years. It will sell vehicles in 55 countries - up from the current 30.

 

These sales increases will be fuelled by a Lotus city car, which will be spun off Proton's own new city car, which was previewed by the EMAS concept by Italian design house Giugiaro at this year's Geneva motor show.

 

Both Proton and Lotus models will have the same powertrains and mechanical essentials. However there will be a high level of exterior and interior differentiation - leading to comparisons with the Aston Martin Cygnet, which is based on the Toyota iQ.

 

Datuk Mohd Nadzmi Mohd Salleh also outlined key appointments from rival manufacturers, which he hopes will fast-track Lotus into the luxury sportscar market.

 

These include ex-Ferrari man Dany Bahar, who is now Lotus CEO, ex-Ferrari director of design Donato Coco, Andreas Schlegel from Aston Martin's marketing and network development, Andreas Prillmann, formerly director of sales and business development at Ferrari, Robert Hentschel from EDAG USA and Frank Tuch, who was director of quality management at Porsche.

 

Datuk Mohd Nadzmi Mohd Salleh also announced that Lotus Engineering will become more heavily involved in developing vehicles for Proton and Lotus Cars.

 

Lotus Engineering has also formed a strategic partnership with engine component company Fagor Ederlan to put the 1.2 liter three-cylinder Lotus Range Extender engine into production.

 

http://www.autocar.co.uk/News/NewsArticle/AllCars/250659/

 

Colin Chapman is definitely turning in his grave right now, and frankly, I don't like one bit the company's new direction.

[T0M722]

Going from the Car Freak's information, I don't understand why they couldn't have brought out a new model to combat Ferraris and Italian supercars... If they want success, they should improve their already unique cars and sell them in more places.

 

I don't really think Proton are smart and they haven't thought this through very well.

[calster17]

The Last time Lotus turned upmarket they fell down! Dropping the lightweights in the 60's for the Esprit and the cars after, although good they nearly killed Lotus! It was't untill the Elise in 96 that put Lotus back on the map!

 

Last i herd was that a 'esprit' follow up was to use the V10 from the LF-A(thanks to Lotus's link with Toyota) and it was going to be priced at around £100K. Personally i have nothing wrong with this, it's just that They should carry on with the Elise Family.

 

I think There trying to cash in on the Middle East & Asisin Markets, just like eryone else. Eather way Lotus are going to go down like in the past or make a huge profit!

 

As much as i hate to say this, but if they change direaction way too much i'm going to have to stop liking them!:cry: Or at least say Lotus died in 2010 one of the two!

 

Well i'll start looking out for Ginetta even more, considering how Ginetta bought Farbio earlyer in the year!(The GTS is now the F400!)

[killalldude]

I just don't understand why they'd do this when the economy is unstable. I'm sure their new cars will be really nice, but I don't think people (the general public) would buy an 80k luxury sports sedan from Lotus when they can get an M5.