The ongoing soap opera at Lotus has been quite incredible. In a span of less than a year, ex-parent company Proton sold its majority stake to DRB-Hicom, the first of a string of events that threatened the commitments and resources once promised to back Group Lotus' five-year plan to produce the five sports cars it unveiled at the 2010 Paris Motor Show. More recently, Lotus CEO Dany Bahar was fired from Lotus due to alleged "unethical" conduct. This week, rumors are suggesting a possible Proton buyout by Volkswagen as well. For months, the burning question around the Lotus office has not been "if", but "when," will Lotus eventually resort to filing bankruptcy.
News from Lotus earlier today did not bode well. After Dany Bahar was forced to leave the company, Lotus appointed Aslam Farikullah as the new chief operating officer. Assuming the new role, Farikullah recognized that he couldn't afford to be the same optimist that Bahar was. In an effort to steer Lotus back to the "right" direction, Aslam submitted new plans for Lotus to DRB-Hicom.
Details of that plan are limited, but it seems Lotus has decided to scale back the 5-model push and even lay off 50 contractors that were originally working on future product developments.
When Porsche faced imminent insolvency years ago, an unlikely product, the Porsche Cayenne SUV, lifted the Stuttgart brand back to profitability. In an attempt to replicate the turnaround, Bahar's five-car plan included a more mainstream luxury sedan and hybrid GT car. However, under Farikullah's new proposal, the two models are unlikely to make the cut. However, reports suggest that Lotus remains committed to reviving the Esprit supercar.
What do you guys think? Is it a wise move to allow Lotus to continue on without pushing for mainstream vehicles as well? Do you think Porsche's formula can apply to a company like Lotus? Let us know in the comment box below!
[Source: The Star]
