Autoblog

Proton has no plans to sell Lotus

Zach Bowman — Fri, 11 May 2012 13:59:00 EST

Filed under: Performance, Etc., Europe, Lotus, Earnings/Financials, Luxury

Lotus isn't going anywhere, according to parent company Proton. Autocar reports representatives of Proton's new owner, DRB-HICOM, stopped by Lotus HQ to reassure the company's staff.

Dato Sri Haji Mohd Khamil Bin Jamil, DRB-HICOM group managing director, said his company "is not thinking about a sale." While the executive said that he could never fully dismiss the prospect of sending Lotus off to another owner, right now such a move isn't one of his company's top priorities. Instead, figuring out a course for Lotus could take months. In the meantime, Dato Jamil said his company would continue to support Lotus financially.

Until recently, Proton was owned by the Malaysian government, but DRB-HICOM purchased the company three months ago. Since then, the future of Lotus has been anything but certain. All production and development stopped for 60 days after the deal was inked, but has now officially resumed. Even so, with no clear long-term decision from DRB-HICOM, it remains unclear whether Lotus will pursue the five-year plan laid out by company CEO Dany Bahar.

Proton has no plans to sell Lotus originally appeared on Autoblog on Fri, 11 May 2012 13:59:00 EST. Please see our terms for use of feeds.

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Lotus model development on lockdown as company looks to change hands

Zach Bowman — Wed, 14 Mar 2012 10:30:00 EST

Filed under: Performance, Plants/Manufacturing, Lotus, Earnings/Financials, UK, Luxury

Lotus has put a halt to all development of future models. The news comes after the Malaysian government sold its controlling stake in Lotus parent company Proton. According to EVO, the company's takeover regulations require all involved parties to enter into a "lockdown" wherein anything outside of normal business is brought to a halt. For Lotus, that means stalling development for 60 days and pushing back launch dates for vehicles like the Exige S, Evora GTE and the upcoming Esprit successor. Lotus CEO Dany Bahar is currently engaged in talks with DRB-Hicom, Proton's new owner, in an attempt to ensure the industrial conglomerate holds onto the sports car maker.

Odds are we won't know what the future has in store for Lotus until after the due diligence period comes to a close. In the mean time, Lotus will continue to build and sell cars as well as engage motorsports efforts. It will also be the featured marque at the 2012 Goodwood Festival of Speed.

Lotus model development on lockdown as company looks to change hands originally appeared on Autoblog on Wed, 14 Mar 2012 10:30:00 EST. Please see our terms for use of feeds.

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DRB-Hicom to buy Proton

Jonathon Ramsey — Tue, 17 Jan 2012 16:31:00 EST

Filed under: Government/Legal, Lotus

A deal has been reached to sell the Malaysian government's controlling, 43-percent stake in Proton Holdings Bhd to Malaysian conglomerate DRB-Hicom for $410 million. Rumors surrounding the deal have been in the news for a few months, with Proton's deteriorating profits leading to speculation about if the government would get out and who be the savior. Of course, the other big question was: what happens to Lotus in the event of a sale.

Analysts had uniformly suggested that Proton sell Lotus, citing Proton's sales difficulties and lack of synergies as more than enough reason. DRB-Hicom has interests in various industies from automobile and car-part manufacturing to ports and aiports, but doesn't provide any more synergies with Lotus than Proton alone.

However, with founder and head Syed Mokhtar so closely associated with the firm it could be that he decides to keep Lotus as a jewel in the corporation just because he can - Lotus could do its work in a quiet corner of the DRB-Hicom empire. The deal for Proton is expected to close in the second quarter of 2012, so it shouldn't be long before we find out the fate of the so-close-yet-still-so-far-away Esprit.

DRB-Hicom to buy Proton originally appeared on Autoblog on Tue, 17 Jan 2012 16:31:00 EST. Please see our terms for use of feeds.

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Investors' advice to Proton: Sell Lotus

Jonathon Ramsey — Thu, 29 Dec 2011 18:59:00 EST

Filed under: Government/Legal, Lotus

There's a lot of smoke going on over at Lotus, but we still have a while to wait before we get the first evidence of fire: the new Lotus Espirit and it's in-house V8 won't be here until 2013. On the other side of the world, there's a fair bit of smoke and fire happening at Malaysian automaker Proton, which owns Lotus.

The Malaysian government controls Proton and has been investigating a partnership for or sale of the company for a couple of years, but despite its efforts, it hasn't made any deals. The 28-year-old automaker has been losing large chunks of market share, and the government feels that sale to a well-funded global player would be the best solution to insure Proton's long-term future. Although it has named its chosen candidate for a purchase, it isn't clear if anyone has made any serious overtures to that end.

Outside observers believe the first thing Proton should do is get rid of Lotus. The mass-market Malaysian carmaker has almost nothing in common with the tiny, English niche sports car producer, and has done nothing but throw money at Lotus' carmaking arm since 1996 (Lotus Engineering, the technology consultancy, is profitable).

Proton has said it has no intention of selling Lotus. However, if Proton is sold then the new owners could reverse that stance. And if Lotus were unloaded, that puts everything CEO Dany Bahar has planned in serious doubt.

Investors' advice to Proton: Sell Lotus originally appeared on Autoblog on Thu, 29 Dec 2011 18:59:00 EST. Please see our terms for use of feeds.

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