Lotus now has five directors, with three Geely executives.
Volvo and Lotus now belong to the same automotive group, as China’s Geely has completed its $65 million acquisition the British sports car manufacturer. Geely owns 51 percent of the firm while Etika Automotive Malaysia holds the remaining 49%. This move will also shake up Lotus’ board, as Geely Chief Financial Officer Daniel Donghui Li now serves as chairman. The five-member board also includes two other Geely executives.
Jean-Marc Gales is still Lotus’ chief executive. Gales stated that the company is producing the most successful cars in its history. He also said that the next generation of Lotus’ sports luxury vehicles will continue to reflect the Lotus brand values of light weight, vehicle dynamics, styling, and aerodynamics, leveraging Geely Holding’s global strengths and resource. Geely was able to negotiate the purchase of DRB-Hicom’s controlling stake in Lotus at $65 million in May. However, there were still concerns about the deal in last year. Geely also purchased a 49.9% stake in Malaysian automaker Proton.
Experts think Geely may use the same strategy to manage Lotus that Volvo uses. British engineers would still be able to develop sports cars, but Geely would have the added advantage of having a large bank account. Any innovations that could be used to create its own products would be taken by the Chinese company.
Although Lotus has not added a new vehicle to its fleet in many years, it has done an admirable job of keeping its current lineup. Each month, Lotus seems to find a way increase or decrease the production or weight of the Evora , Exige or Elise . The Evora GT430 Sport is the latest innovation. It can travel 196 mph (315 km per hour) and is the fastest vehicle on the road. In just a few years, the automaker could release a crossover model. Business at Lotus has been strong even before Geely’s purchase. The automaker made its first operating profit since 1970s.