Photo: lotustalk.com
Things over at Lotus don’t seem to be going very well, according to The Independent, as the famed British automaker reportedly owes some €28- ($37-) million to parts suppliers. They have requested tax payment deferments, in order to try to manage the situation.
The debt is the unfortunate legacy left over the former owners of the company, and it is a mess which needs to be cleared up by the company’s current owner, Malaysian corporation DRB-Hicom. The source article gives us a good idea of what the situation is like: “DRB-Hicom, the owner of the Norfolk sports car maker, was not available for comment, but sources close to the company said many of the outstanding issues – including payments to suppliers – relate to the previous management. They added that in some cases DRB-Hicom is challenging some of the arrangements with suppliers over previous contracts where there are concerns over quality control. But they also repeated that DRB remains fully committed to the plant at Hethel, its workforce and turning Lotus around into a self-reliant and global brand.”
Furthermore, with revenues of $72-million and costs of some $56, Lotus does not currently have enough cash to cover it. We say that before they can start to think about refreshing their range of cars, they must first deal with their financial issues, otherwise the possibility of them ‘going under’ is a very plausible one. Hopefully, DRB-Hicom will be able to sort out the money stuff, and let Lotus do what they know best (in the world, we say): make great sports cars.
Furthermore, with revenues of $72-million and costs of some $56, Lotus does not currently have enough cash to cover it. We say that before they can start to think about refreshing their range of cars, they must first deal with their financial issues, otherwise the possibility of them ‘going under’ is a very plausible one. Hopefully, DRB-Hicom will be able to sort out the money stuff, and let Lotus do what they know best (in the world, we say): make great sports cars.
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