Just two years after taking the reins at Hethel, Lotus CEO Jean-Marc Gales has made the bold claim that the small, Proton-owned British sports car maker will turn a profit as soon as the current fiscal year beginning in April 2016 – the first time in 20 years.
In an interview with Automotive News, Gales said that Lotus’ return to positive cashflow will be the culmination of a three-year plan, with the first two years building up to this moment. “I can’t give any numbers, but we are better than the year before,” he said. “We are continuously improving as 2013 was better than 2012, 2014 was better than 2013, 2015 was better than 2014.”
Gales gave a ballpark sales estimate for the year 2016 to 2017 of between 2,200 and 2,300 units, although he believes the company can do even better. The year will include the first full-year sales of the Evora 400 in the United States, which was launched there in May. “We expect sales [of the Evora in the US] of 400 cars. We already have 250 orders,” he said.
Lotus’ flagship marks the company’s return to selling road-legal sports cars in America – since to the discontinuation of the US-spec Elise and Exige in 2011 and the Evora in 2014, sales were limited to track-only cars. Right now, all sales in the country is made up of the 400 coupé; a roadster version will arrive around a year from now. “Right now almost the whole factory is [building] U.S. orders,” he said.
He added that Lotus will continue to review costs in the future, despite trimming much of the bulk in the intervening two years. In that period, jobs have been slashed from 1,200 to 900, the number of hours taken to build a car has been reduced by 10% and the company has been continuously cutting the cost of parts. “It was one of the prerequisites of becoming profitable, and we will get there,” he said.
Gales also shared some juicy details regarding its next architecture, which will replace the bonded and extruded aluminium one it’s been using since the Series I Elise was launched in 1996. The new platform will likely continue to be made from aluminium because of its flexibility over other materials like carbon fibre. “On the same car you can do both open or closed.” he said. “We are still working on reducing the weight.”
That architecture will come to the market in four years on smaller cars like the Elise, and a little longer on larger cars like the Evora. Before that, however, the Elise will be given one more makeover, although it won’t make it to the US – that will have to wait for the new architecture. “We have concrete ideas of what we’re going to do with the car regarding improved infotainment, lower weight and more power,” Gales said.
“There’s so much life left in the current [architecture],” he added. “The basic architecture is 20 years old, yes, but the Porsche 911 architecture is 50 years old and that’s still going strong. We’ve continuously updated it. Look at all the competitors who try to copy our cars. Either they get too heavy or too slow or both.”
On the subject of hybrid powertrains, Gales said that such technology would not work on a sports car, although he said the system could work on its SUV. “Why add two powertrains and batteries when I can add one powertrain and optimise?” he asked.
“It would be completely against Lotus’ philosophy of lightweight. It would add 100kg of batteries and 50kg for the second drivetrain. Hybrid is favored by the current emissions cycle. When the emissions cycle changes it won’t be favored as much.”
Gales said that while it falls under the small manufacturer clause in Europe with regards to emissions – the same one that companies like McLaren and Aston Martin reside – it does have to fulfil certain regulations in the US. “Over a five-year period, we need to show a gradual 3%-per-year reduction. We can get there. In Europe we are working on remapping the electronics and reducing weight,” he said.
When asked on how he plans to achieve that target, Gales said, “One option is to take out the supercharger [from the Evora]. Another is to go for extreme lightweight, but that is in our DNA anyway. The third is have longer gear ratios, which I don’t like much because it takes away the liveliness of the car. I don’t believe a four-cylinder fits there.”
inb4 ini tipu somebody plis go repot to DoJ & FBI kasi tangkap ini Lotus Official 1.
The one that we are after is your boss, Najib for defrauding Malaysian people
Lotus is a disgrace. It has been sucking so much of money from Proton. It is also finishing Proton’s RM1.5 bil cash.
Why employ a Mat Salleh CEO that cost millions of pounds? Get a Malaysian CEO that cost cheaper. White man’s gaji alone is RM10 mil plus
Im impressed that u din even bother to read the headlines b4 start nonsensical rantings, much less the whole article. Bravo!
different entity and different accounting that your P1 is the one losing money but Lotus UK making $ and contribute back to P1..your bumi ego goes no where…
All the red shirts and bodohs all complain MAS had a white man CEO and we should have local CEO. Now Lotus got white CEO, the red shirts don’t know what to do
Been hearing this forever….
great thing what you’re doing there Mr. Gales.
reducing and optimizing an organization seems simple and make sense in theory. practically, not many people succeed in executing it. yet Mr. Gales has done it handsomely. obviously with full support of his organization – the employees and the investors. this should a be material for a business case study..
..for Proton to learn.
Isit me or that since Najib tookover, theres now courage to hire the right pipu- even Mat Salehs, to helm money losing entities and somehow by chance, all these r starting to make profits?
Why not hire Mr Gales here to become Proton group CEO. To curb the rot, Proton probably needs a Ghosn or a Schreyer
With Najib liberalising many companies and industries now and opening the markets, who knows. It might just happen!
But let him finish setting Lotus house in order first b4 transferring to P1
He doesn’t eat Nasi Lemak, so not qualified to be a CEO of Nasi Lemak company
Didnt we hear the same thing when they launched 5 models years ago?
Proton and Lotus better sell to China company. They got the brains to turn it around. Now, the management eat nasi lemak and lazy, no vision for change. Sleep whole day and wait for tongkat.
Agree. Tidur budaya kita. P1 workers need to rehat often for malam jumaat
That was under previous sacked CEO. Who failed to make the Lotus profit during his tenure.
Time to sell to the highest bidder
Lotus please for once say a big heartfelt thank you to all of us here 30 million Malaysians that indirectly made possible the funds (God knows how many billions ringgit spent) available at your disposals for so many donkey years with not much details given at our Parliament too.
Just a simple acknowledgement will do and then whatever crap flying cars you may develop or gazillions profit or Ioss made well who bloody cares then anyway.
It is time to ditch the Toyota engines in the Lotus . Better strike a deal with Honda to buy their old K20A engines from the previous Civic Type R to put into the Elise at least. Perhaps can even use the K24A block. With that light body of the Elise to compensate for the lack of torque from the NA engine, the screaming VTEC should be very enjoyable to drive. Lotus is all about agility and minimalist concept, not just pure power. 4 potters are okay if the engine has great characteristics.
Should use Proton’s Campro. More efficient they say
that engine is too old and doesn’t meet Euro 5 compliant at all bro. it’s not even possible to tweak the engine to comply with Euro emission standard. I believe Mr. Gales and his men in Lotus has more insight than most of us do. chill…
Yang dok komen ni, mampu ke beli keta sports? X kisah la, lotus ke… cap kuda ke… cap kerbau ke…..
Sembang jer kan? Acah2 ada duit banyak? Org berduit x peduli nak komen kt sini laaa… (sama macm aku…) cuma nyampah baca komen yg ala2 terer n byk duit…..