Lotus secures £10 mil grant from the UK government

vince cable lotus

We haven’t heard much about Lotus lately, but here’s a piece of good news for the DRB-Hicom subsidiary. The UK’s Regional Growth Fund (RGF) has awarded Lotus £10.44 million in grants, which will be used for R&D of products, along with staff training. Lotus is expected to create 313 new full time jobs to support production over the coming years.

UK Business Secretary, Vince Cable MP visited Lotus’ Norfolk headquarters yesterday, where he toured the engineering and factory facilities and formally announced the grant to Lotus management. The RGF is a flexible and competitive £3.2 billion fund operating across England from 2011 to 2017. It supports projects that are using private sector investment to create economic growth and sustainable employment.

The grant is a further boost for Lotus, following a £100 million investment by DRB-Hicom which has allowed the company to enhance its engineering, productivity, efficiency and quality. Lotus is also recruiting for more than 130 new jobs, previously announced in July.

Lotus Exige S Roadster 3

Lotus COO Aslam Farikullah said: “This grant is part of a wider strategy for Lotus created to ensure we thrive and grow. We are responding to increased global demand for our cars and engineering consultancy services and this grant will help to position Lotus at the forefront of global automotive innovation.

“We have very exciting plans for our sports cars and it’s a very positive move for Lotus that we’re in a position to create new jobs and to significantly contribute to Britain’s automotive industry. The team here at Lotus have worked very hard to secure this grant and every employee is playing their part in the stability, growth and future success of our company.”

We too paid a recent visit to Hethel to try Lotus’ latest model, the Exige S Roadster. Click here for the review.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Lotuser on Nov 26, 2013 at 1:21 pm

    Stop it. This is embarrassing. 100m of investment by drb hicom into thin air. Want invest invest in plotong first la. ( although not much different) don’t know how to walk want to fly.

    Like or Dislike: Thumb up 37 Thumb down 13
    • Vader on Nov 26, 2013 at 1:51 pm

      The point is how to launch the production cars after spend a lot in R&D.
      Lotus been consumed a lot of money for R&D purpose, just look at those 2010 concept cars such as Esprit, Elan, Elite, Elise and Eterne.
      These cars are great, why not make it launched? But keep standing on the same point, repeating R&D again for new concept cars, again?

      Like or Dislike: Thumb up 20 Thumb down 0
    • SamShowedMeTheHilux on Nov 27, 2013 at 9:42 am

      Just close shop lah. The 10 miilion pounds is just nice for the directors to get paid and their hefty and fat allowances flying business class and staying in five star hotels.

      Company so shaky also, but directors live the lives or the rich and famous. If not for Proton, Lotus would have died long ago. And if not for the 30 million people paying overpriced cars in Malaysia for 30 years, Proton would have gone bust. So each and every Malaysian have been supporting Lotus indirectly.

      Time to close shop. Nobody talks about Lotus anymore. Once the Lotus Esprit Turbu was everybody’s pin up beside the Lamborghini Countach. Today, Lotus is not in anybody’s pinup. Neither it is in the mind of anybody. The company is a total failure. Just close shop.

      Like or Dislike: Thumb up 8 Thumb down 4
    • abuya123 on Nov 27, 2013 at 12:13 pm

      This not your money. DRB is not own by Malaysian government. And Britain government have brain, not make decision like to spend for lunch. We only read at the bottom. We dont seat in their meeting. We dont know details. So before you bash because it is Proton, think a little bit.

      Like or Dislike: Thumb up 7 Thumb down 4
      • Hassan on Nov 28, 2013 at 8:40 am

        Are you drunk mate? DRB is big time government crony. Infact Syed Mokhtar runs the whole government. He is the Government. Get real in life mate

        Like or Dislike: Thumb up 2 Thumb down 4
  • Jaybond on Nov 26, 2013 at 1:39 pm

    This could be the funding needed for the totally new Lotus models (hopefully not for another variants of the existing models)..

    Like or Dislike: Thumb up 2 Thumb down 3
  • Black Dog on Nov 26, 2013 at 1:43 pm

    What happened to the 5 new models? Too shameful to mention?

    Like or Dislike: Thumb up 7 Thumb down 3
  • Kiansom on Nov 26, 2013 at 1:53 pm

    Sick of your negative comment. Automobile is a very competitive market… Lotus models are old and need renewed/refreshed… Do you know how much cost involved to produce a completely new model? GBP10mil is nothing… DRB-Hicom have had some easy money from some of their ‘business’… I hope these money are utilised well and do some good and help build up this brand again… and for Proton too…!

    Like or Dislike: Thumb up 22 Thumb down 18
  • nyayanya on Nov 26, 2013 at 1:56 pm

    Well done Proton, oppss i mean LoLtos!

    Anyway £10.44 million in grants just enough to cover the salary for the head of R&D and a little for the CEO. No enough, hmmm they need at least £10 billion.

    Like or Dislike: Thumb up 12 Thumb down 8
  • The solution for them to bounce back is simple, open a manufacturing facility in China especially for the Chinese market.. expand their dealerships in china, gain as much money and then expand and enhance their presence in North America and Europe.. no point of them fighting a losing battle in NA and EU.. retreat, strengthen the product, and comeback with a vengeance.. not gung-ho all the way..

    Like or Dislike: Thumb up 12 Thumb down 3
    • intel CORE inside on Nov 27, 2013 at 1:11 pm

      It’s good to obtain the fund injection from UK government. However the expectation of the public on DRB to turn around Lotus and Proton is much to be desired. Most have lost faith. DRB excels in monopolistic ventures. As a retailer having to compete in the open market, they are too slow and too risk averse. In a conglomerate like that, everyone is covering their back hence the snail paced decision making process. The main shareholder should do a major revamp and shake up of the top management otherwise DRB will never change and be competitive. All are sleeping there with meeting, reporting and blame culture. Ideas are plentiful but they forgot the operational and sustainability part which are key to success and usually the most difficult. Modenas our nation motorcycle venture and pride is dying, Honda and Suzuki is managed by the Japanese hence in profit. Audi is a monopolistic venture hence in profit for now, until Audi AG takes over its distributorship. DRB top management just don’t have what it takes. It’s very pathetic and sad.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Ayecaramba on Nov 26, 2013 at 3:00 pm

    In all honesty, I doubt Lotus is a lousy car manufacturer. With Lotus under Proton’s wings, they’ve not only suffered reliability problems but a big blow to their reputation. Their engineering skills have always been magnificent. Without Proton, Lotus would’ve done better; especially with parents like BMW or VW.

    So for those of you who keeps dissing Lotus, stop it. You don’t even know what they’ve achieved and Proton is the bottleneck of their growth. They’re a small company, mind you.

    Yes, Proton should sell it. Not because it is useless to Proton but Proton not being able to manage themselves. Lotus has wild potential but Proton being their owners doesn’t cut it for them. I’d rather DRB investing $100M into Proton instead and allow Lotus to be under a better parentage.

    Like or Dislike: Thumb up 22 Thumb down 16
    • If lotus is great without p1..Y the hell they has been sold by previous owner time and time again?

      Like or Dislike: Thumb up 17 Thumb down 6
      • Ayecaramba on Nov 26, 2013 at 6:35 pm

        Back in the 80s, Lotus faced a big debt with the fledgling economy. GM tried saving Lotus but sold it later on to a private company also owning Bugatti at that time. And at that decade, small private companies used to own small car manufacturers like these and without a doubt barely had capital to revitalize the car lineup. In 1996, many tried to avoid Lotus due to their aging cars and low profitability level. Proton however acquired them. It was the economic crisis again. BMW had trouble with Rover and VW tried to dispose off car manufacturers that weren’t making income. Yes, Lotus would’ve died if it weren’t for Proton but with Proton holding them until now, it’s gonna hurt both the manufacturers with Lotus having impeded growth and Proton, losing money.

        Like or Dislike: Thumb up 10 Thumb down 6
    • Well said Ayecaramba.

      Like or Dislike: Thumb up 6 Thumb down 6
  • abdullah on Nov 26, 2013 at 3:45 pm

    Throwing good money after bad money.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Don't understand on Nov 26, 2013 at 3:48 pm

    After Proton bought over Lotus,
    1. Lotus doesn’t perform any better ever since.
    2. Lotus cars in Malaysia aren’t getting any cheaper.
    3. Proton cars aren’t getting any better.
    What are the points?

    Trust me, no matter how much investment goes into Proton, nothing changes. Same like our almighty government, GST 60% still they will go bankrupt.

    Like or Dislike: Thumb up 22 Thumb down 12
  • darus on Nov 26, 2013 at 4:17 pm

    Ayecaramba,
    Lotus is just a tuner and it does not suffer reliability issues cos its using a TOYOTA engine.
    What kinda magnificent engineering skills when Lotus
    does not have any experience building their own engines?
    And Lotus was owned by GM and never BMW or VW.
    Talk is cheap but please read b4 u shoot cos
    it reflects your low IQ and EQ !!

    Like or Dislike: Thumb up 14 Thumb down 28
    • Ayecaramba on Nov 26, 2013 at 6:49 pm

      Sorry, how old are you? Lotus is a tuner? Pfft, look at your pathetic self. Lotus relied on Toyota for their engines because OF LOWER COSTS! Reliability would be better too when using Toyota’s engines. When Lotus faced difficulties during the 80s, they asked Toyota for parts that can be used in their cars. In exchange, THEY DEVELOPED THE SUPRA WITH TOYOTA. And just so you know, if you even pin point me for not even reading about Lotus, look at yourself first. Even Wikipedia showed the engines Lotus built themselves. There are more engines Lotus TUNED AND ENHANCED. Go look up Lotus Carlton. Look at the engine done by Lotus. Also, go see the chassis of the cars that Lotus have developed and you’ll be amazed. You don’t like Lotus. Don’t regret when the Chinese snap Lotus up and create cars that will be better than Proton. Manufacturers are interested in Lotus but DRB isn’t willing to sell.

      Like or Dislike: Thumb up 19 Thumb down 5
    • You have no idea what you are talking about. They have tons of engineering skils.

      Many car manufacturers asked Lotus for help in developing cars. Even Nissan had to ask Lotus for help with GT-R suspension systems. That’s how Lotus makes money. They also purposely make simple lightweight sportscar because even the British wants Lotus to stay with Colin Chapman’s tradition. Dany Bahar got sacked mainly because of his ridiculous plan.

      Lotus have massive experience building their own engine, gained during 70s and 80s. At that time they built “Charge cooler” turbocharged 4 cylinders and even twin turbo 3.5V8 for the Esprit V8. No other car manufacturer knows how to build a proper and reliable turbo engine at that time.

      They also did the Campro, 200hp 2.2V6 and 300hp 3.0V6 for Proton (cancelled big Campro?). and I’m sure you heard Campro CFE. That was done by Lotus too (original tuning 170hp, detuned to 140hp for RON88 compatibility IIRC).

      They did maaaaany things. Check out their engineering dept. website and don’t be a freaking ignorant.

      Like or Dislike: Thumb up 10 Thumb down 6
      • Silidsg on Nov 28, 2013 at 12:23 pm

        Lotus esprit reliable ? You must be dreaming in lala land. It’s the worst piece of shit when it comes to reliability. I used to own one back in HK.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Lousy Lotus on Nov 26, 2013 at 4:24 pm

    When Mclaren started to build MP4-12C yet to know did their super car works it onot. They just build their car in an old factory. After the place yet enough to use to build MP4-12C and P1 only they invest £100 million into new facility factory.

    But DRB Lotus, yet get anything d invest £100 million into it. Did they really think their car is pod enough to fight with Super brand?

    Like or Dislike: Thumb up 7 Thumb down 2
  • UK gives you money, still wanna complaint.

    DRB Hicom has work hard in securing the fund, you think so easy to get 10mil pound funding?

    Lotus brand is prestige, that is why many still want to buy the company, and I am glad that DRB Hicom did not ditch it.

    Like or Dislike: Thumb up 11 Thumb down 6
  • Abg Long on Nov 26, 2013 at 5:14 pm

    i wud luv 2 hv a lotus :)

    Like or Dislike: Thumb up 3 Thumb down 2
  • Raja Lawak on Nov 26, 2013 at 5:30 pm

    Proton owned Lotus but Proton can’t even ask Lotus to design nice cars for them!

    Like or Dislike: Thumb up 11 Thumb down 1
    • It’s not about design, it’s about production costs. Proton have many impressive designs of their own (even Lotus Europa S and some others is designed and MEANT TO BE a Proton) but more curves means more cost for each body panel. That is a big no-no for a Proton car since Proton have small market volume right now.

      Remember when Gen-2 came out in 2004? It had curves no other cars had. It looked almost like a concept. And that costs a lot for panel production. They also have big market at that time, then flopped because of lousy QC and materials. If only Proton had them right, Proton would become Toyota today.

      DRB is injecting quite a lot of money into Proton now to fix that so let’s wait until the EMAS-based small car comes out in 2014.

      Like or Dislike: Thumb up 4 Thumb down 8
  • Robot boy on Nov 26, 2013 at 11:40 pm

    Drb is a company with a group of ego ppl who think they r gods! this money will be used to do nothing useful. Remember Agusta deal?

    Like or Dislike: Thumb up 6 Thumb down 5
    • Azmi Turbo on Nov 27, 2013 at 9:59 am

      Drb will get their own people from Pos Malaysia or Alam Flora to run Lotus!!! I personally pity Lotus as they are dying under the mis-management and no direction and ego manner of their new bosses @ drb. at least last time under DSZ they had plans for new cars.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Lotus is dying and without direction under Potong, look at Buggati, Jaquar, Bentley and RollRoyce since taken over by bigger companies flourished becoz they can use their engine parts, platforms etc…Potong can offer wat engine or platform? all in the name of pride

    Like or Dislike: Thumb up 7 Thumb down 3
  • McLaren01 on Nov 27, 2013 at 12:31 pm

    i heard proton engineers are very free as DRB hold most of the projects. It is expensive when your design go better, but you still can control the price if your so depending on the crony vendors. Find new source vendors.. Proton can come up with proper direction, until then will be like this.. loosing all money.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Silidsg on Nov 28, 2013 at 12:17 pm

    Lotus again ??? Better take money open Lotus curry house. More profitable than running this fish and chip toycar.

    Like or Dislike: Thumb up 0 Thumb down 1
 

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