Photo: Lotus
Lotus, the British brand known for its lightweight models, is working on a strategy to bring profit.
The goal is even more ambitious, as the brand hopes to build and sell 2,000 cars this year. With such low production values, it is hard to achieve profit, and this has been shown by the brand’s previous financial results, which have not been fortunate for some time.
However, Jean-Marc Gales, the CEO of Lotus, has revealed that things are looking up, but things are going slow. Gales has led the brand in the past two and a half years, and has had various priorities until profit could be a goal on the company’s flip-charts.
Before profit, Lotus’ production line needed to be stabilized, the company had to complete the development of some models, and obtaining a positive cash flow was the primary objective.
With the issues presented above out of the day-to-day concerns of it leaders, Lotus wants to grow. At this moment, the carmaker earns the money it spends, so it no longer relies on cash injections from shareholders, the CEO of the brand has explained in an interview with the Brits at Auto Express.
Lotus’ workforce was trimmed from 1,200 employees to 850, who now build almost 50% more cars than previously achieved. So instead of 1,200 workers making 1,200 cars a year, just 850 people now make 2,000 vehicles. The company’s CEO admits that people work harder now, but they are more motivated these days. At the same time, warranty claims are 60% down from two years ago.
The next thing for Lotus is designing and launching a volume car, which will bring the much-needed volumes expected of it. According to Jean-Marc Gales, an SUV is almost certainly the definitive choice for the next step. This model would be entirely different from other products, while also having the particular touch of the Hethel brand.
However, Jean-Marc Gales, the CEO of Lotus, has revealed that things are looking up, but things are going slow. Gales has led the brand in the past two and a half years, and has had various priorities until profit could be a goal on the company’s flip-charts.
Before profit, Lotus’ production line needed to be stabilized, the company had to complete the development of some models, and obtaining a positive cash flow was the primary objective.
With the issues presented above out of the day-to-day concerns of it leaders, Lotus wants to grow. At this moment, the carmaker earns the money it spends, so it no longer relies on cash injections from shareholders, the CEO of the brand has explained in an interview with the Brits at Auto Express.
Lotus’ workforce was trimmed from 1,200 employees to 850, who now build almost 50% more cars than previously achieved. So instead of 1,200 workers making 1,200 cars a year, just 850 people now make 2,000 vehicles. The company’s CEO admits that people work harder now, but they are more motivated these days. At the same time, warranty claims are 60% down from two years ago.
The next thing for Lotus is designing and launching a volume car, which will bring the much-needed volumes expected of it. According to Jean-Marc Gales, an SUV is almost certainly the definitive choice for the next step. This model would be entirely different from other products, while also having the particular touch of the Hethel brand.
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