Zhejiang Geely is considering an investment push in Lotus Cars, and it sounds significant, the sum being bandied being to the tune of US$1.9 billion (RM7.75 billion), Bloomberg reports. The Chinese company, which completed its acquisition of a 51% stake in Lotus last year, is looking to push the brand into the forefront once again.
The investment plan includes adding production facilities and research centres, according to an unnamed source familiar with the matter. The first phase reportedly involves an expansion of Lotus’s Hethel plant, with 200 new engineers added to the workforce, the source revealed.
Beyond this, it’s looking at opening a second factory in the UK and adding a new design and innovation centre, the source added. The idea behind this expansion is to work towards building Lotus as a luxury nameplate to compete with the likes of Porsche and Ferrari.
No details about new models were revealed, but former Lotus CEO Jean-Marc Gales, who left the company in June, had said earlier this year that the automaker would be coming out with two sports cars in 2020, with a SUV due in 2022.
Yesterday, it was reported that the SUV is well on its way towards an earlier 2021 debut, with a sister model following it, both expected to utilise components and powertrains from Volvo. The two cars are tipped to rival the BMW X4 and X6, similar to the two-pronged approach Porsche has made with the Macan and Cayenne.
The report adds that Geely is also apparently in discussions to increase its 51% stake in Lotus with its Malaysian partner Etika Automotive, but Geely declined to comment on the matter, and there was no response from Etika.
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Wow, Geely really has a lot of money! I don’t know how. Geely only started in 1997, 12 years later than our Proton which started in 1985.
And yet, Geely made about RM167 billion last year whilst Proton was kosong, infact, negative profits ie hutang.
No idea why. Proton had world markets to market their cars too. Infact Proton had China market to market our Protons there too
Correct. Mesidis is 92 years old yet kena bought by Geely. So shameful. Jermany must learn from China how to do business.
You are right, we need more China brains in Malaysia especially running our car companies and GLCs. Productivity will leap tenfold!
Yg dh ditendang keluar bijaksana sini, yg dh masuk bijak pandai berpolitik. Mmg x sesuai jalankan GLC, runtuh semua nt. Patut ganti konco2 ni dgn tokoh2 bisnes dr China mcm Jack Ma dsb.
US$1.9 Billion for Lotus ?
RM170m for Proton??
Lotus under Proton >20yrs nothing been developed and nothing been gained. Lotus under Geely within 5yrs model will reform selling well worldwide. Sohai betul, whatsoever under SONGKLAP mesia for sure will FAIL.
Fake news again Geely only bought about 4% of Mercedes. Thus Mercedes has not been “bought” by Geely.
Shareholder is shareholder. You only get dividends. Try learning company law. You cannot control a company unless you own 51%.
With 4%, you want to use the jamban also, Mercedes won’t let you in
“Daimler AG has announced that Li Shufu, chairman and founder of Zhejiang Geely Holding (ZGH), is now its largest shareholder with a stake of 9.69%. This places Li ahead of the Kuwait Investment Authority (6.8%), BlackRock (5.95%) and the 3.1% held by the Renault-Nissan Alliance.”
Lolz!
Mercedes fanboi is delusional. Geely is the single biggest shareholder in Daimler AG PERIOD!
If u think what PT repoted is fake news then take it up with them lor…
Geely have a very big local market. They made money by selling cars to locals then make good use of the money to develop their cars. Our Proton was once cash rich but unfortunately never make the right steps from there. What I heard is cronies suppliers and dealers that kill the brands.
Geely managed by a group of china chinese expert, what do you expect? they are darn good when focus.
It’s very simple…
Geely driven by 1 man with foresight, intelligence, dedication, commitment and meritocracy!
No favouritism, only law of nature…
Meh! inb4 Tesla loss 11,000 Euros for every care they sold.
What do u expect from American? If they don’t lose money, they are not called American.
simple common sense look at the population china and malaysia. the buying power in china is bigger than our countries which obviously more money is generating in the Geely company than proton where the money is not gwenerating that much
Can you point out where you obtained that RM167 billion figure? Or are you trying to emulate another fake news peddler who like to spout big numbers without facts.
Idiot!…Geely wont sell proton to china, why?…Proton no longer design car. Geely use proton to market their rebadge car for Malaysia.
you’re in a good hand now.
i’m happy for u, lotus.
No company who buy a controlling stake in Lotus will just keep it to Rot. Mr Li ShuFu is not a dumb man throwing millions away without an inkling what to do with Lotus.
Its just a matter of time B4 Mr Li/Geely take Lotus to greater height. Yes, chances of Lotus using Volvo technologies in their new car/SUV is a given.
It will give Geely Group an advantage to share common engines, technologies & parts with economic scale in mind. I think Geely is trying to buy the remaining 49% stake to speed up Lotus development ASAP.
Agreed. Lotus needs to improve on “luxury” department since it already renowned for performance and handling.
They back to the original plan than before DRB Hicom owned Lotus and cancelling all program.
Proton and Malaysia failed in bringing Lotus to great success. It’s unfortunate that we have to hand over a great company to the Chinese. Hopefully the Chinese unleash the full potential of Lotus to say.
But p1 manage to make lotus profitable again after 60 years. At the same time DRB sell lotus n p1 to Geely.
Difference of chinese mega companies with other foreign mega companies are chinese have cash, other companies just have funding through ipo and stocks which extremely volatile and probably never be profitable. Tesla for example
With cash to throw and their ability to churn out good looking cars? They will survive.
Proton must hand over to Geely and compete with low cost vehicle market in the world using Proton name.