Lotus is well on its way to becoming a profitable business for the first time in its 68-year history, after overturning losses of up to £168 million (RM927 million) three years ago, according to the Eastern Daily Press. Having joined the business in 2014, CEO Jean-Marc Gales has overseen a three-year plan that has led the company’s overhaul towards profitability.
“We have a turnaround plan that’s firmly on track as well – we have increased revenue – we are planning to do over 2,000 cars this year. We have reduced our costs – the overheads are down 40% in two years, so we have achieved a massive overhead reduction,” said Gales, who has reduced staff numbers from 1,200 to just over 900 worldwide.
“The plan was a three year plan – at the end of the second year we should be cash self-sufficient and starting this financial year which was April 1 we should be profitable. The car side was always bankrolled by the engineering business – now the car side of the business is profitable, for the first time since the company was created, and that’s amazing,” he added.
The plan is based on re-focusing the business on its core value – a pioneering manufacturer of lightweight and benchmark handling sports cars – and looking forensically at all processes. An expanded worldwide dealer network means more cars sold, and Lotus is also targeting the US market with the range-topping Evora 400.
“We have increased our sales in the market – the target this year is over 2,000 and we have a record order book, with 760 cars on order, which is what we didn’t have before,” said Gales, who also hailed the Norfolk carmaker’s staff and the backing of Malaysian owners DRB-Hicom.
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U mean they were alredi not making profits even b4 P1 tookover?
So why were bashers not complaining how come they were still in business beforehand. Oh isit becoz they r our colonial overlords so cannot persoal them, but when P1 tookover so can persoal P1 now?
Rebadge the lotus into Satria Nemo with price of RM70k, the Lotus can make profit very fast.
Rebadging is still Proton’s forte after all.
You mean they already making losses before proton took over? Who would buy a lost making company thinking they can turn the company around with their teh tarik and karipap culture?
Mesidis and MV Augusta… oh wai
get this guy to head proton, see can make profit or not
Just make sure he is accustomed to Malaysian culture of sleeping on the job…..
If the lotus own by toyota, i think it should profit many year already. unfortunately proton cant provide any good platform and engine part sharing to lotus…
Ironically lotus used to owned by GM but still not profitable..n ironically Toyota don’t make sports car anymore.. just hybrid/electric …
It’s a shame Malaysian mentality still colonised by Japanese even though they left our country before independent.. so don’t expect us to compete with them anytime soon.. we have too much respect towards them.. n very pessimistic towards our own products
Well said, couldn’t agree with you more!
Not exactly a bad idea, since Jean-Marc previously was the Head of the French auto giant, Peugeot-Citroen group (makes you wonder why he later joined the rather smallish British outfit). But of course , ain’t gonna happen with the Malaysian carmaker..
It happened for MAS ,sooo…..
68 years in the red!!! So now lotus should support proton..
Good thing they get rid of Danny Bahar.
Proto should do the same sack the bodoh chief designer Othman
Guinness & Malaysia Book of Records!
68 years straight making loss!
thank god! after tun Mahathir being sacked, proton and lotus have managed to get profit! U go Najib!
Cartoon lah you….
If im not mistaken.. They did have some special grant/payment from the UK Government this year….
Soon the sales of Proton will be the same as Lotus also. 2000 units per annum.
around year 2065, we can read the same news headline; proton set to turn a profit for the first time in 60 years
Thanks to China sales
Remember they said ‘set’, they are still not making a profit. I’ll wait until I see the quarterly results.
Well done Lotus Cars and Mr. Jean-Marc Gales ! You guys managed to do the impossible, proving that the right man in the right job can make all the difference.
Looking forward to seeing future Lotus developments, and of course the upcoming Lotus SUV, and new Fujian plant.