Reports coming from the UK say that Group Lotus CEO Dany Bahar is looking for financial partners to buy over the sportscar maker from Proton. The Sunday Times news piece suggested that Bahar is not looking for any partner, but one with the ability to fund Lotus’ costly five-year turnaround plan, one with £500 million ready to invest.
The report adds that Genii Capital is interested in the loss-making Proton subsidiary. Genii, which already owns the Lotus F1 team, is said to have been eyeing Group Lotus for some time and is “close to completing due diligence”.
If the report is accurate, we have a willing buyer. But is Proton’s new owner, DRB-Hicom, a willing seller? “Options are open. At this particular moment, I’m open to sell or not to sell Lotus,” DRB-Hicom boss Datuk Seri Mohd Khamil Jamil was quoted as saying.
Proton, owner since 1996, has already poured in a lot of resources into Group Lotus – should they wait for the fruits of the investment or cut their losses?
Looking to sell your car? Sell it with Carro.
sell la. nothing good came out of it except the sticker “handling by lotus” which everyone by now should know was never really by lotus.
Totally agree with you!!!!
better absorb lotus and make it sport car division rather than separate entity
whatever lotus’ sentimental value, the new owners will possibly evaluate whether to keep or sell along the following lines:
1) whatever has been spent in the past is written off as sunk cost. one cannot keep spending more just because one has spend a lot in the past.
2) if lotus requires an additional funding of RM 2 billion, can the money be better spent on proton directly?
3) will malaysia benefit more to spend RM 2 billion in UK or in malaysia?
4) can the technology provided by lotus purchased cheaper, better and faster elsewhere?
5) are there any good proposals to buy lotus? if yes, good, the synergy might exists elsewhere, so there is value in lotus. if no, then, lotus might be an empty shell kept going by proton / malaysian money all these years.
‘4) can the technology provided by lotus purchased cheaper, better and faster elsewhere?’
It seems that Proton already found a source for cheaper, better and faster development? The new Tuah was NOT designed by Lotus?
Pfff…Lotusss is a joke ! lotusss handling lolx come on potongs can handle that of coz even worst lolx
Dont sell now. See how esprit project turn out to be first.
CEO Dany Bahar is interested in buying, meaning to say he knows the in and out of the company. Lotus will never turn a profit because the more it makes, the less likely proton will sell.
That is how managers who bought over their ex-boss’ business knows how to turn around the company in months. True story, its everywhere.
since when proton boss got dato’ sri?
Where you’ve been all these while?
In a cave or under the sea?
dont sell now..i think proton still need lotus for a time being..this is my personal opinion who knows nothing on business :-)
“At this particular moment, I’m open to sell or not to sell Lotus,” – a clear cut case of non-denial denial there.
i would not see Lotus as a burden but I see them as a source that needs to be fully capitalized. In Proton case, I do not see that Lotus is fully capitalized. As a boss, you should squeeze your staffs at all time to get the result you want. You cannot just say that Lotus is not performing unless you have already tried. Perhaps DSZ know better.
First, chairman Nadzmi and MD Syed Zainal will be replaced, now comes this news. It is safe to assume Lotus will be sold, while Proton will return to becoming car assembler. Sell Lotus for short term profit, while becoming assembler like Perodua to guarantee operational profitability.
Since many people here are convinced this turk’s ambitious project will fail, it’s good riddance. Good luck Genii, you’ll need a lot of that. Also, cheaper rebadged VW, Honda, Suzuki, Audi, Mitsubishi (again), Mercedes will surely bode well with Msians, no?
Better than spending billion in R&D but end up unable to sell enough to cover the development cost.
End up keep repeating the same model for a decade : Proton Gen2 > Proton Persona
Just face the reality, the market for Proton is limited.
Danny double crosser Bahar.. Well done. Serve you right P1 for appointing such person. So is the money down the drain of Lotus worth it for all these years? All you get is “handling by lotus”, only anti P2 ppl buys that.
P1 handling tune by Lotus better than P2 handling tune by ToyoDai…it’s proven…never try ka?
If only you had the fact to back your statements. Lotus are draining the money now even more so then before. The have a very aggressive turnaround plan and it requires huge amount of investment and time. The upcoming launches of its cars will be the true indicator of the success of failure of their plans.
As for proton not getting anything in return, well the only reason we can actually make our own cars and engine now is all down to the tech transfer from lotus. Granted many parties were at the table to make it happen but they were the lead. They were never bought to make money, lets get that straight. They were bought for their tech.
The all new cars after the gen 2 have a bit of lotus in them. Do you know the lowly saga is a prime example. It has better suspension setup,brakes and handling capabilities compared to the city, vios and even the pug 206. It is not a car made to take corners at break neck speeds but it can! and do it well it can.
I not a proton fan but we should give respect where its due. And lotus being part of proton has been more beneficial for proton than most people can understand.
Dont forget the reason the almighty GTR handles so well is because it was designed and built by LOTUS. They were given a tank and they made it handle like it was on rails..go figure what they can do on the upcoming Espirit!!!!
Lotus is a great brand and have superb cars but when Proton bought Lotus, I thought Proton would benefit by making more attractive cars, design wise or make cars with better performance & handling. Sadly, apart from the Satri Gti, everything else didn’t really have the Lotus DNA. The closest thing you get is the Lotus Handling ‘claim’. And if you’ve driven a Proton before then you know how true that claim is. Either that or Lotus did a really bad job with Proton cars.
So unless the new Proton owners can somehow make full use of Lotus to develop Proton in a positve way, then we should not keep Lotus. IF Proton is just paying for the losses, then its not wise to keep it. I personally think Lotus will make it big again with their 5 year plan. I’m sure many have seen the few prototype cars and they look damn good.
this genii story has been brewing for quite sometime isnt it
the only thing genii going to get is chastity belt branded lotus. no way DRB selling lotus even at 500 million.
and danny?
hes in no mans land.
Sack je DB tu and put some one from DRB. Dia tu memang dari awal lagi ada plan nak ambik Lotus. I say DRB put a nice plan to make full use of Lotus for the benefit of Proton. Even if they have to bring the whole establishment to Pekan, just do it. DO NOT sell, or you will be melopong when seeing the new Esprit menjalar kat jalan di Europe in 2014. Believe me Lotus can make big money for DRB.
if proton sells lotus. they are the most stupid people in the world. u have built lotus. poured a lot of money. did 5 year plan. now u want to sell lotus because u could not wait any longer. wait a stupid moron.
agree….sudah waste duit banyak lepas tu mahu jual…
OMG!
to sell or not to sell – DRB
to support or not to support – my 2 cents
lotus = biawak hidup.
good handling is all about reducing understeer especially for FWD cars. why need lotus.
L.ots
O.f
T.rouble
U.sually
S.erious
L-Lot
O-Of
T-Tumbs
U-Up
S-Soon!!!
At this juncture I think it is wise to just sell Lotus. In order to survive Proton need to focus at their own house first. It a loss case anyway. DRB need to recoup their money, what a better way than reaping benefit from all those ‘low hanging fruits’. Although it still riles me up when I read about it. Low hanging fruits, people fight tooth and nails to get their hand on patents and stuff. And we got one of automotive engineering powerhouse that churning techs like streaming river and we’re going to sell it just like that.
Well I guess that what anybody would do if they have their decision made by bean counters.
Heard the story from an insider broker that P1 cant turnover if Lotus still financial loss for another 2 years and might bangkrap due to no more funds from the G (Khazanah pull out!)… That why DRB will sell Lotus if the price is right! As DRB boss is a business man and not a charity worker.. Bye bye Lotus..
If DRB could be more patient & optimistic , perhaps their top management should try to modify the 5 year turnaround plan for Lotus to make it more successful. One thing that DRB could think for Lotus, is to add a high volume sportscar model. One must not forget that the highest selling sportscar in history, by volumes is the Mazda MX-5, which ironically follows the principle of early Lotus road cars! – simple good handling sportscars. But to make it successful, it must of high quality (interior & exterior) , good power-to-weight ratio and cheap running cost just like Mazda MX-5….
I agree with you. In addition, for the upcoming Proton Persona R aka Tuah, Proton should build a high-performance version of the Tuah (like what Evo is to Lancer) and let Lotus rebadge it for international market. In that way, both Proton and Lotus can enjoy huge sales and can even turn the loss-making Lotus into a profit-making one.
proton shouldnt exist so this shit shouldnt happen at all…
I hope lotus will drag proton into bankruptcy and proton will collapse on its own stupidity. No more proton, bye bye lotus, welcome foreign carmakers and hello to cheaper cars. That’s the Malaysian dream.
This will be DSZ’s last hurrah !!
Time for the whole management team to ship out !!
No use sticking to a sinking ship !!
All the self pride and huge ego has to be put aside and face reality
– form an alliance and move forward !!
sell Lotus Cars…
keep Lotus Engineering…
Its going to be a very sad day if Proton sells Lotus. Even the China Proton cars being sold with Lotus name tagged to it. If they sell it what can Proton use as a branding strategy to sell its cars overseas? Its Proton such an established brand name now? Unbelieveable, after so many years of owning Lotus and now we just have a plan in place to roll for Lotus and they wanted to sell it…. I can’t even understand why Kazanah wanted to sell its stake to DRB…. The only thing I can think of.. our G needs money…
There are lots of things that DRB could do with Lotus apart from the obvious sell or keep scenarios. They could install clauses in the agreements such as rights for the present technologies produced by Lotus to stay with Proton, they could insist on a share of future technology and have a final say if any new owner decided to sell Lotus, pretty much as what GM did with Saab. They could even insist on a percentage of every planned Lotus car sold for the next ten years. The question for DRB is to first find out if Proton fully utilised whats offered by Lotus, and whats in the pipeline development wise that could benefit future Proton products. I would say the engineering side of Lotus would be needed for future products, so perhaps DRB might decide to break up the core components of Lotus keeping what they actually need and selling those that they don’t need. Guess what I’m saying is that DRB need to implement a thorough external due diligence exercise done by professionals to avoid any bias – then make a decision
DRB should do weight which is heavier, benefits or loss. Then decide!
£500m = RM2.4bil… DRB buy Proton for RM2bil+ then sell Lotus for RM2.4bil… looks like DRB got Proton for free.
before Proton bought Lotus, they have billions in their bank. Proton should let Lotus go, kumpul duit again and start your own sport car division when the time is right. just follow Renault… start from making people cars and now the F1 champs, everything just by using 1 brand.
£500m is not the selling price. Is the money need for the five years plan. That means if DRB keep Lotus, they might need to have another £500m from their pocket or from bankers to fund the five years plan.
perserverance is the key, DRB! proton has poured a lot of resources into lotus, and they are on the verge of profitability with the 5-year turnaround plan (if it works as planned). proton should wait just a little bit longer.
and wth is that guy danny bahar up to? getting rid of him is a better option, and replace with a malaysian.
Nothing to shout Lotus Handling on Saloon Car..like Waja, Gen2 etc. Better sell now for good alr price rather than wait till 1 Euro as per what happened to Gilera last time !
Danny has no role in looking somebody to buy over Lotus. I guess he is scare of losing his job. Lotus is not belong to Danny. He is just an employer only. Maybe he will get a fat bonus after closing the deal. OH Danny, everybody is watching you. You could lose your job earlier.
sell some, not all of it.
share the risk, share the upside.
meet danny bahar and team, analyse, put someone in, understand better, then decide.
in life, the only thing that is certain is breathe in O2 and breathe out CO2…
you want to build proton up, give it a shot.
khazanah was a reluctant shareholder, no passion for anything that cannot bring them a quick buck, never in it for the long run (strangely).
keep us informed, drb!
it has been 15 years since proton owned lotus.
anything yet? seriously?
offer lotus to air asia boss tan sri fernandes. he has the money.
ayooooo…u mahu kipas itu tony ka….
Looks like Dany Bahar is the punching bag when things go wrong.
Everyone from Dato Nadzmi ,DSZ and even P1 Advisor should be shown the door.
Lotus needed 1.2 bil pounds and yet P1 opted to fork out that big amount rather
than to offer an equity stake to another investor.
This is outright arrogant – end up jadi bodoh sombong.
Now you know why Dato Nadzmi offered to take P1 private
-only for his and his crony’s self interest !!!
Proton should take the money and go before all gone bust !
serves u right P1 and GL for teaming up with DB in scr*wing, double crossing and push TF to corner …..serves u all right!!!!hahaha…who has the last laugh now? TF and his co are starting to get more established with their automotive projects while you guys are plunging down…
Itu lah… TF want to buy, u guys jual mahal. See what happen, Danny is screwing you up real good with his new pal from Genii.
If not, Now everybody can drive a Lotus!
:P
Proton + Lotus = Protus
Get what I’m trying to say here?
loton lah
sell, donwan sell, sell, donwan sell, sell, donwan sell………
Feed up oredi la wei…….
Just fire Bahar, cancel his ambitious five year plan, stop sponsoring Formula One, and focus on building lightweight cars. Bahar is overated!
DRB Proton should not sell Proton. If really wish to sell, small percentage only allow. Else Proton will be no more well know brand in UK/Europe. Proton cannot have Lotus Handling anymore. Sad that DRB not thinking what they have invest previously. Dr. M should advice on that. Please.. !!!
proton is still not a well known brand in europe, even in the RHD UK market!!
they are afraid even to sell new Saga and Exora there.
Jual je. Apa benefit dia kat Proton? Jadi beban Proton aderla.
Wait, I thought one of the term of Khazanah selling proton to DRB is that DRB can’t sell any of proton subsidiaries in the first two year period it taken over the company?
Who says proton cars handling is bad. Proton cars are one of the best handling in the market compared to poor handling toyota altis, vios and nissan sentra. I agree that Proton is not squeezing enough from Lotus. Disagree on the selling idea. Proton should keep Lotus. See what Danny can do first. If he fail then fired him. Dont give up! Dont be a looser!
in europe, proton handling is on par with fiat cars, vw, skoda, seat and vauxhall.
they do not need lotus to help. they use science engineering.
Dun sell la…i wanna see intrakota bus with lotus handling badge first..
Cara diorang bawak pun macam dah ade Lotus handling pun.
Sekarang dah jadi RapidKL, bukan intrakota lagi.
Whoever buys Lotus will lose money as Lotus has not been able to build cars enough to achieve economies of scale. Investment in automotive R&D is a high risk as there is no guarantee of potential returns for a new player.
So how can DRB-HiCOM milk from Lotus/Proton? I suggest the followings:
1. Through collaborations with OEMs to sell Lotus/Proton services worldwide
2. Collaborations with foreign countries in middle east or eastern Europe to assist in building state-owned car manufacturing/assembly industry
3. Licensing of Lotus automotive technologies such as Omnivore engines, etc. Lotus has been forefront in some automotive technologies
4. Mass producing of Lotus automotive technologies by DRB-HiCOM for OEMs such as aluminium chasis for cars. Audi A8 is the first mass production car featuring Aluminium Space Frame chassis – however it is still expensive to mass produce.
5. Focus not only in road or sports cars (which are already very competitive) but also extend technology research applications in heavy vehicles, coaches, commercial taxis, vans and trains
To sell or not to sell remains a tough decision to be made. Whatever it is, should DRB decides to keep Lotus, let there be the best of brains to run the company. Forget about skin color, pride, politics and whatnot.
However, if DRB just wants to do WAU ( widespread asset unbundling ) like MAS then that’s another issue.
£500 million is a lot of money as compare to 1 Euro. The buyer is gonna take a super high risk to do that…
Maybe they should let Tony Fernandes run Lotus and collaborate with his Caterham?
i,m lotus+proton fan from the early days,whatever your opinion here,theythe new management,dont give a damn.hahaha…making money is their main goal
The valuable asset in Lotus for Proton is Lotus Engineering while Lotus Cars is a burden. These 2 different business divisions however are part of the same group and thus keeping or selling Group Lotus is not an easy decision. Lets not forget this. Lotus Engineering is very valuable for a company like Proton
I just dont know why these 2 companies fail to employ the best brains to run their businesses ….
Look at Nissan with Gosn ….. just because someone is a Tan Sri or Datuk Seri wont make jack of a change ….they simply don’t have the Skills and capability.
The more you want to stop foreign intervention the more you go BACKWARD (in this case).
Proton and Lotus now is like the BLIND LEADING THE BLIND,
i know its not my problem but i think should sell it as soon as possible uk citizen hates proton
meh……
I told you so many time since last year to kick that delusional CEO Dany Bahar out….
now its too late maa… just sell that LOTUS meh
and for PROTON B.O.D go hugs that useless turk CEO
#LOL
Proton is forever looking for partner……… C’mon, for God’s sake Lotus is a UK brand. Proton’s parasitic policies not gonna help our automotive industry in anyway.
wise move.now focus should be entirely on restructuring proton.cut off lotus.proton never fully utilised lotus except for ride n handling.but persona is really a good handling car