Lotus plots range expansion

Saloons and SUVs could join the Lotus line-up as part of a recovery plan that also involves job cuts

Lotus could be building saloon and SUV models within a decade as part of a transformation plan framed in secret over the past few months by its recently arrived CEO and former PSA president, Jean-Marc Gales.

The idea was initially leaked on a Malaysian website, but in an exclusive interview with Autocar, Gales (right) confirmed that the plan was very much on the table.Gales was speaking after announcing that Lotus was laying off 325 of its 1215 employees. He described the move as “very sad and regrettable” but said it was needed in order to reshape the company and cut costs for the short term. He said his initial aim was to increase sharply sales of Lotus’s three existing models the Elise, Exige and Evora by making them better and increasing dealer spread.

“You will see many new variants of familiar Lotus models over the next nine months, and even more in the next two years,” Gales said.

“Our cars will be faster, better made and more convenient to use, but we will keep our relationship with Toyota as  an engine partner so the cars  will be also be very reliable  and easy to own.”

In the longer term, however, Gales says there is no reason why what he sees as Lotus’s core values of lightness, dynamic ability and unique styling cannot extend to “cars in other categories than the sports car” a strategy that has already turned Porsche into a hugely profitable automotive powerhouse.

Lotus sales are up 46 per cent so far this year, and the company is confident of selling 2000 units by year’s end, most of them in “good old Europe”, although other markets also look promising.

The company has recently opened nine more dealerships across Europe and has plans for a total of 20 within the next few months. Gales believes a reasonable production target with the existing line-up is 3000 cars per year.

He clearly believes a return to profitability is an urgent requirement, but refuses to be tied to a date beyond naming it as a short-term objective.

“I am 100 per cent confident we can get Lotus back to where it was in its greatest days,” Gales said. “But it would be foolish to suggest the task will be easy.”