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UK Government Denies Loan for Lotus

Lotus failed to achieve investment from the UK Government’s Regional Growth Fund (RGF) in order to built their new cars.

Models such as the new Esprit might be built somewhere outside the UK as a result of the Government’s decline. Back in January, the British automaker tried to get a £27,5 million (EUR31,000,000 or $45,000,000) loan that was necessary for the construction of a new factory where the new concept cars should have been manufactured.

Lotus' new model range includes the new Elan and Esprit models, which were unveiled as concepts at the Paris Motor Show, in September last year. The Norfolk automaker’s application has been rejected by the Department for Business, Innovation and Skills (BIS) which comes as a surprise due to the fact that the BIS approved funding worth of £450 million (EUR 508,000,000 or $735,000,000) for Jaguar, Land Rover, Bentley, GM as well as other companies.

"Following this decision Group Lotus is currently exploring all available options including the possibility of submitting an updated bid for round two of the RGF, which is set to close on July 1," said a statement from Lotus.

Due to lack of funding, the British automaker might move some production to Austria, in Magna Steyr, where Aston Martin's Rapide model is being built and the same location that might host production of Porsche's Boxster starting with 2012.

The new Lotus Esprit should arrive on the market somewhere around 2013, fitted with an all-new supercharged V8 powerplant. The carmaker’s next plans are to produce the new Elan model, while the other three projects from the company, the new Elise, Eterne and Elite, are currently on hold.
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