Troubled British automaker Lotus is getting a second infusion of cash following a 100-million-pound ($161.5-million) investment by its parent company DRB-Hicom that was made in August. The substantially smaller investment, a mere 10 million pounds ($16.2 million), comes from the British government's Regional Growth Fund.

The fund, which is part of a 3-billion-pound ($4.8-billion) fund to spur economic growth in the UK, will allow Lotus to invest even further in research and development as it seeks to reinvent its lineup of lightweight sports cars. The fund will also allow the UK-based outfit to provide further training for its new crop of employees.

"This grant is part of a wider strategy for Lotus created to ensure we thrive and grow. We are responding to increased global demand for our cars and engineering consultancy services and this grant will help to position Lotus as the forefront of global automotive innovation," said Aslam Farikullah (shown above with UK Business Secretary Vince Cable MP), the chief operating officer at Lotus.

Scroll down for the official press release from Lotus.
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MULTI-MILLION POUND BOOST FOR LOTUS
Monday, November 25, 2013 - 12:30
Lotus has secured a £10 million government grant which will see the firm create more than 300 new jobs.

The Regional Growth Fund (RGF) has awarded Lotus £10.44 million, which will be used for research and development of products, along with staff training. In addition Lotus is expected to create 313 new full time jobs to support production over the coming years.

Business Secretary, Vince Cable MP visited Lotus' Norfolk headquarters today, 25 November 2013, where he toured the engineering and factory facilities and formally announced the grant to Lotus management.

The grant is a further boost for Lotus, following a £100 million investment by its owners DRB-HICOM which has allowed the company to enhance its engineering, productivity, efficiency and quality. Lotus is also recruiting for more than 130 new jobs, previously announced in July 2013.
The Regional Growth Fund (RGF) is a flexible and competitive £3.2 billion fund operating across England from 2011 to 2017. It supports projects that are using private sector investment to create economic growth and sustainable employment.

Aslam Farikullah, Chief Operating Officer at Lotus, said: "This grant is part of a wider strategy for Lotus created to ensure we thrive and grow. We are responding to increased global demand for our cars and engineering consultancy services and this grant will help to position Lotus at the forefront of global automotive innovation.

"We have very exciting plans for our sports cars and it's a very positive move for Lotus that we're in a position to create new jobs and to significantly contribute to Britain's automotive industry.

"The team here at Lotus have worked very hard to secure this grant and every employee is playing their part in the stability, growth and future success of our company."

Business Secretary Vince Cable said: "Lotus is an iconic British car maker, with some of the most innovative engineers in the business. The car industry is one of Britain's great success stories, employing over 130,000 people and helping to build a stronger economy by contributing £11 billion a year. The Government's industrial strategy is working and giving business the confidence to invest, creating more high skilled, long term jobs in the UK"

"I am pleased to announce today that our flagship economic plan to create jobs outside of London - the regional growth fund - is awarding Lotus a £10 million grant which will help them develop their next generation of cars and create over 300 new jobs in East Anglia. The Government has already supported over 400 projects with £2.6 billion from the Regional Growth Fund, promoting growth in regions across England. The latest round is still open for another two weeks and I'd urge all businesses with a plan to support jobs in their local areas to apply"


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    • 1 Second Ago
  • 30 Comments
      m_2012
      • 1 Year Ago
      They sold 80 cars and got hundreds of millions of dollars from their government. They must have better knee pads than GM.
      imag
      • 1 Year Ago
      I wish Tata would buy Lotus off DRB. Lotus would make a great companion brand to Jag and Range Rover. They could share the new motors that Jag is developing, and Lotus could help do vehicle dynamics for Jag. They would likely do very well in showrooms together, and it would solve Lotus' dealer problem. Tata appears to be pretty good at restoring luster to once-fallen British brands. They seem like the ones who could make Lotus work globally again.
      Teleny411
      • 1 Year Ago
      Lotus should expand into small e30, old Jetta size RWD sports coupes a la the Cortina. I think that could be a valuable market segment.
        imag
        • 1 Year Ago
        @Teleny411
        There is no way a tiny car company can compete in that market now. Modern platforms cost billions. The level of complexity of cars today far exceeds that of the 80's. And the margins on small cars are slim, requiring supply chains and incredibly precise coordination. Caterham seems to be taking a smart approach for a small builder. They are partnering with a large company on a shared platform and are building niche cars for a niche market. Lotus either needs to get folded under a big company's wing or they need to follow Caterham's lead.
          Teleny411
          • 1 Year Ago
          @imag
          Yes they could. The easiest route is to scout out partners to reduce cost and Mazda is making noise about RWD as is Fiat with Alfa. Someone above mentioned Jaguar.
          karlInSanDiego
          • 1 Year Ago
          @imag
          New platforms only cost billions when a company builds and operates million square foot factories and insists on building 25k+ units a year. Lotus has always been part of a cottage industry. No one gets stupid rich, but cool cars are still being built by hand. I'm very impressed by our Lotus, but I appreciate that they've used parts from other manufacturers, which has worked well for Lotus for most of its existence.
      RGT881
      • 1 Year Ago
      Danny Bahahahaha FUBAR'ed Lotus and it's going to take a lot more than $16 mil to bring it back to something even remotely close resembling prosperity.
        imag
        • 1 Year Ago
        @RGT881
        They really aren't in any worse place than they were when he came on. No one actually knows if his plan would have worked. They had a new Esprit on the way. And he brought in people from Ferrari and Porsche who were improving the cars and could have made the brand work. The purchase by DRB of Proton really had nothing to do with Danny Bahar; Lotus was just caught in the middle. I'm not saying he was a great guy, but I actually think he was doing the right thing by taking the brand upscale.
          karlInSanDiego
          • 1 Year Ago
          @imag
          I agree the Bahar was a joke. He thought the world revolved around players because he is one. He should be working for Crystal. Company was foolish hiring a marketing ******* who only marketed to his own parent company. Lotus has a great product in the Elige. The Evora's meh to me, but I see its place. But pushing Lotus to Baller money was a dick move and I for one am glad it blew up in his face.
          m_2012
          • 1 Year Ago
          @imag
          He was the worst thing that could have ever happened to them. Spend, spend, spend, hiring his friends and rap stars. Pushing for 5 new models as they were pushing great talent out the door.
          • 1 Year Ago
          @imag
          [blocked]
          RGT881
          • 1 Year Ago
          @imag
          Problem with Bahar's plan is that he took on an enormous amount of debt, which was not sustainable.
      • 1 Year Ago
      [blocked]
        JanP
        • 1 Year Ago
        Yes.. looking at the cars rich people tend to buy these days, Lotus needs to come up with a Porsche 911, a Maseratti GT, or a Gallardo competitor. Actually, I don't think they can pull this off. This company is an endless money pit. The only way they could succeed again is after being taken over by a big company.
          • 1 Year Ago
          @JanP
          [blocked]
      Louis MacKenzie
      • 1 Year Ago
      Lotus cars are already super light. They just need to market it more, make it more ergonomic, and reduce cost.
        ROLO
        • 1 Year Ago
        @Louis MacKenzie
        what? you are off. nothing to do with the way the company is run
        yjbeach
        • 1 Year Ago
        @Louis MacKenzie
        I love how they spur the economy by investing money in a car that only few can afford and buy. Perhaps they should produce a car at a price-point to compete with the FR-S. Perhaps spreading the R&D over another model could help the bottom line.
        • 1 Year Ago
        @Louis MacKenzie
        [blocked]
      Tim L
      • 1 Year Ago
      I would think that Lotus would be smart enough to pull out of F1...Honda, Toyota, BMW etc did it and they have much larger budgets. I guess why pull out if you can count on the British Government to keep you going. You can argue that F1 tech is going to make their cars better, but they are never going to recoup that expenditure.
        Tyler Poppe
        • 1 Year Ago
        @Tim L
        I thought Lotus F1 was not Lotus the Car company. They were only sharing the name, but not related.
          Tim L
          • 1 Year Ago
          @Tyler Poppe
          You could be right. Now that you mention it, it sounds right.
          Bernie Kressner
          • 1 Year Ago
          @Tyler Poppe
          Tyler - - You are right. The two are separate companies. Lotus F1 Team is owned by Luxembourg-based venture capital group Genii Capital. -------------
          JanP
          • 1 Year Ago
          @Tyler Poppe
          They are related. Lotus the Car company gave Lotus F1 the formal permission to use the name. Originally, they were going to sponsor the team, but I don't think they're giving the team any support.
          m_2012
          • 1 Year Ago
          @Tyler Poppe
          They pretty much got sued for the name after Lotus promised to support them, and then backed out at the last minute. It was either pay up or let them use the name. Lotus took the cheap route and sold out.
      chirowolf
      • 1 Year Ago
      Please save the Lotus In the words of Ferris Bueller 'it is so choice, if you have the means I highly recommend you picking one up"
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