Lotus has been running at a loss since acquisition in 1996

PETALING JAYA: Proton Holdings Bhd is divesting its interest in Lotus Group International Ltd after failing to turn it around since acquiring control in 1996.
It is not due to want of trying, however, as numerous media reports point to efforts to inject more funds to drive the company back to profitability.
In 2011, Lotus secured £270 million (RM1.33 billion) in loans from six financial institutions over a six-year period to do just that, without much positive results.
Proton acquired a 80% stake in Lotus, valued at £51 million, in October 1996 following the bankruptcy of the former owner, businessman Romano Artioli. The controlling interest was bought from ACBN Holdings SA of Luxembourg, a company controlled by Artioli, who also owned Bugatti at that time.
Proton’s stake in Lotus was increased to 100% in 2003.
The deal now, however, comes at a time when CEO Jean-Marc Gales said it is on track to make a profit and with costs at its lowest in eight years.
Formerly head of brands at PSA/Peugeot-Citroen, Gales was recruited in 2014 to turn around Lotus. He cut 300 jobs and reduced manufacturing costs.
Gales reportedly told an online portal earlier in the year that Lotus was on the mend despite recording a £50 million loss for the financial year ended March 31, 2016.
It was reported that revenue for the year fell 17% to £79 million after safety regulation changes forced Lotus to suspend sales of its Evora high-end sports car in the US, the world’s biggest sports car market. Unit sales over the financial year fell to 1,607 from 2,015 the year before.
Lotus Cars is one of the most famous sports car makers in the world. It currently manufactures four model lines – Elise, Evora, Exige and 3-Eleven.
Lotus Cars owns Lotus Engineering, a successful automotive engineering consultancy firm with offices in China, Malaysia and the US that advises third-party companies, mostly active in the automotive industry, on subjects such as lightweight architectures and driving dynamics.
Lotus has been involved in the development of suspension and handling elements of all Proton cars launched since 1996.