If you look at Lotus on the surface, you’ll see a company that appears to be on stable ground. It’s never been an automaker that prides itself on the volume of vehicles it makes, but it has released its share of models, most of which have been universally praised for being some of the best handling sports cars in the segment. But if you dig deep enough, you’ll realize that the soil that Lotus’ foundation stands on isn’t as stable as you’d think.
Financial trouble. Mismanagement. Multiple bouts with near-bankruptcy. The list of ills run long within Lotus, and as news comes out that the automaker is reportedly on the verge of another ownership change, the question on whether Lotus can have a stable and supportive ownership group has never been as relevant as it is today.
Reports say that DRB-Hicom, one of Malaysia’s biggest conglomerates and the current owner of Lotus, is on the verge of selling the sports car brand to Chinese manufacturer Geely. Separately, Proton could also be in play with reported talks of the PSA Group gaining a controlling stake in the Malaysian auto brand.
Two potential deals are on the table, but for now, or at least in this space, we’re only going to talk about Lotus.
The issue here is the tenuous status Lotus has had for years despite producing some of the purest sports cars in the segment. It’s gone through numerous bankruptcy ordeals just to keep the company afloat. It’s also gone through numerous ownership changes, most recently in 2012 when its parent company, Proton, was fully acquired by DRB-Hicom. Now DRB-Hicom is reportedly looking to divest Lotus from Proton and sell it to Geely, a Chinese automaker that counts Volvo among its auto brands.
Oh, and let’s not forget about the many controversies the company has been embroiled in, most notably the ouster of CEO Dany Bahar in 2012 over allegations that he was misusing company funds for his own lavish expenses. The two parties eventually settled in 2014 after multiple lawsuits but the fiasco served as another stain in the company, whether it deserved it or not.
So what do we make of this reported sale of Lotus to Geely? According to multiple reports, the Chinese automaker is keen on taking on Lotus while the PSA Group, the parent firm of Peugeot, Citroen, and DS, would be taking over Proton, thus splitting the two brands that have been linked together since 1993 when Proton acquired Lotus. Negotiations are still ongoing, but if it does happen, Lotus could find itself with another new owner. Hopefully, Geely has serious plans to turn Lotus around and bring some stability back to the company.
It’s a crying shame that the once proud British automaker has never had an ideal ownership situation for close to three decades now, but with a new ownership group reportedly on the horizon, there’s at least hope of seeing brighter days ahead for the sports car brand.
Continue after the jump to read the full story.
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