Thank god for social media. Not only does it subject me to the various armchair CEOs and their plans for the future of Lotus, but it also alerts me to when an unknown Lotus PR wag goes completely off the reservation, and publishes a hate-filled invective on Facebook that looks like an angst-filled letter penned by a 19 year old boy to his ex-girlfriend. And you know what? I like it.
A year ago, I penned a passionate defense of the new direction that was being taken by Lotus. In the piece, I chastised enthusiasts for their armchair criticism of Lotus management and their resistance to bringing out new vehicle to replace the nearly two decade old Elise (which would hit that mark by the time a replacement rolled around in 2015) and their lack of faith in the stewardship of CEO Dany Bahar, the man who helped Luca di Montezemolo turn Ferrari around. Now it looks like I’ll have to retract those words and admit I was wrong.
As one of the few people who doesn’t hate the direction Lotus is going in, the news that development of Lotus’ entire lineup has been suspended is disheartening. It seems that the Malaysian government is looking to unload their stake in Proton, parent company of Lotus.
Lotus is one of those brands that every auto enthusiast loved to lionize, despite (or possibly because of) the fact that it hasn’t made a profit for its owner, Proton, in 15 years. But now things are changing. Lotus itself is in the midst of a makeover, seeking to transition from niche sports- and track-car company to a Ferrari and Porsche-rivaling aspirational brand. Meanwhile, back in Malaysia, its owner, Proton, is undergoing a few changes itself. Having been founded as a state-backed business, Proton may soon be privatized, reports Bloomberg. And as a result, Protons private investors could push for a quick divestment of the firm’s Lotus holdings. One such investor, Gan Eng Peng of HwangDBS Investment Management, tells Bloomberg
It will make sense for them to sell it. Proton and Lotus are not a good fit. They are in different market segments, both in terms of geography and product.
On paper, a super-lightweight Lotus with a genuine ’68 Corvette 350 and Muncie 4-speed ought to eat up a road course; just go onto any online forum full of self-proclaimed car experts and they’ll tell you exactly that. Reality, on the other hand… well, reality doesn’t always live up to the expectations of internet car experts. (Read More…)
Lotus invited a considerable amount of schadenfreude when, about a year ago, it introduced not one new car, but an entire new lineup. And there have been plenty of opportunities to steal a mirthless laugh at Lotus’s expense, including when the firm backed away from Toyota engines, talked up the “authenticity” of a rolling chassis, ran into Chinese branding problems, and drew inadvertent comparisons to Reebok by hiring rapper/producer Swizz Beatz. And the hits keep coming. Lotus Senior Adviser, Former BMW executive Karl-Heinz Kalbfell tells Autocar
The brand is well known but the products are not. We are focusing on a new range of cars, but we must sell more cars now.
But how well can the brand be if the cars aren’t selling? Speaking as someone who spends bit of time interacting with auto enthusiasts, I’d argue there are actually some serious questions out there about what a Lotus is, what with all the talk of hybrids, folding hardtops, performance sedans and generally increased weights. But Kalbfell was just scratching the surface of the host of problems to be found in the land of the Lotus eaters…
The easy answer: desperation. More literally though, all three have recently employed the talents of hip hop producer Swizz Beatz in more or less desperate attempts to recapture some much-needed cool. Unfortunately for Lotus, the most recent employer of Mr Beatz, they’re not only getting “sloppy thirds,” but they have to actually share promotional space with Reebok, of all brands. So why did Lotus, a brand with loads of heritage and under-the-radar cool, hire a guy to pass along such brilliant advice as “the key is to infiltrate the market in a cool way” and “for a premium sportscar, they want the flash”? According to Lotus’s release (with video)
1. Like Group Lotus , he means business: He’s a risk taker with considerable credentials including music producer, rapper, designer AND painter.
2. Like our cars, he’s multi award winning: This year he shared a Grammy Award with Jay-Z.
3. Like Group Lotus he keeps good company: This man regularly works with the likes of Bono, Kanye West, Beyoncé and Alicia Keys.
Even if you think Lotus should avoid the “enthusiast trap,” this is a bad call. Having already pimped for Aston-Martin, Swizz’s automotive-sector cool has been spread thin… and does Lotus really want to be associated with his other comeback client, Reebok? The answer: no, but it’s already too late. Lotus was already putting the cool cart before the new product horse, and hiring a prominent and over-booked shill certainly won’t help.
It’s one thing for a sportscar brand like Lotus to shrug off the self-destructive iconoclasm of its most hard-core “fans,” but it’s quite another thing for its chief executive to take a piss on the entire supercar market while describing the downpour as “authentic, cloud-filtered Alpen raindrops.” To wit, the following bit of nonsense found at Autocar:
The new Lotus Esprit will offer a more “authentic” driving experience than the Ferrari 458 Italia and McLaren MP4-12C, according to CEO Dany Bahar… Bahar claims the Lotus Esprit will “have the character and emotion” that he says the McLaren lacks. He also revealed that the rolling chassis was now complete and fully running prototypes would be ready by November… Formula 1 KERS-style technology is also expected to feature on the Esprit, but Bahar said such electronic systems would be used only where they add to the driving experience and not as driver aids.
If you can make any sense of this blithering nonsense, or how Bahar came to it based on his impressions of a rolling chassis, you must work in marketing. Not that there’s anything wrong with that…
The auto enthusiast world has been torn apart of late by the re-boot of the Lotus brand, which is transitioning from hard-core enthusiast niche manufacturer to mass-appeal, high-end, branded premiumness. The photo above shows the first steps towards building a Porsche or Ferrari-like brand: Lotus Originals sells leather jackets and other branded goods in order to build up the exclusive appeal that the brand needs to bank on once its new cars arrive. But in China, Lotus’s branding issues are going to require more than just some sexy young things pouting in leather jackets while artlessly assembled around a piece of Lotus’s brilliant past. China Car Times reports that Lotus parent company Proton’s China-market deal with new Saab partner Youngman has already created some issues, namely
UK’s Lotus will enter the Chinese market on June 15 this year, but its Chinese name is Lu Te Si (“路特斯” – a transliteration of Lotus) rather than the well-known Lian Hua (“莲花” – Chinese for Lotus Flower), because China’s Youngman Lotus has used the famous brand to market its cars first, and Lotus does not want consumers to get confused between the low cost products from Youngman and its own high end sports models.
When Lotus showed five new cars at the Paris Auto Show last summer, the British Sports Car brand raised a number of eyebrows amongst the motoring press. Not only was Lotus abandoning its lovable but hugely unprofitable enthusiast/trackday niche, but it was also reaching for Ferrari and Porsche-style brand recognition while offering an ambitious but underwhelming (on paper anyway) vision of its future product lineup. Five new vehicles (three mid-engine, two front-engine, four two-door coupes, one four-door sports sedan) is a lot of development work, and initial reports that Lotus would use Toyota power including hybrid drivetrains didn’t create much for enthusiasts to get worked up over. Lotus has since backed away from using Toyota power, but developing engines for five new vehicles creates a whole new set of challenges. And, as it turns out, Lotus has wuietly backed away from the most ambitious elements of its plan, and the firm now plans to launch only two cars at first. Has Lotus turned the corner from hype machine to credible competitor?
On my way home from Toronto’s trendy Queen West nightlife district, I often take the long way home, up through the newly gentrified working class neighborhoods of the city’s west end, which gives the chance to drive past a row of exotic car dealerships. A quarter mile stretch is home to Rolls-Royce, Aston Martin, Bentley, Land Rover and Lotus. The Lotus dealer formerly sold Ferraris as well, and the place was a long-time haunt when I was a child, where the only two cars in stock were a Mondial T and a gorgeous British Racing Green Esprit S4.
The same Esprit later ended up in the hands of a neighbor, a geeky looking guy who was probably in IT and also owned an Oldsmobile Eighty-Eight LSS. I had no real idea about the Esprit’s mechanical content, just that it made a fantastic racket when it would tear through the flat, straight stretches of my neighborhood – and I loved the color.
Lotus has perplexed and antagonized a number of auto enthusiasts by announcing its intent to expand beyond niche sportscars and become a global sport-luxe brand in the vein of Porsche and Ferrari. By announcing five future cars at once, Lotus made an audacious splash in the industry, and painted a giant target on its back. At the same time, Lotus’s initial plans called for the use of Toyota V8s and hybrid systems, leading some to wonder if Lotus was even being audacious enough. After all, assuming it could play with Porsche’s and Ferraris using only mass-market customer engines was somehow cravenly conservative to the point of being obnoxiously ballsy. Surely Lotus realizes that bespoke drivetrains are crucial to building a global sportscar brand? Well, apparently the Hethel boys didn’t get it… at least until their potential customers made an issue of it.
When “Maximum” Bob Lutz showed up on the advisory board at Lotus, we were hardly surprised about his choice of post-retirement projects. After all, Lotus is one of the most audacious (privately-funded) turnaround attempts in an industry that runs on turnarounds, and Lutz is the king of building automotive hype, fresh off of one of the most overexposed automotive projects in recent memory, the Chevy Volt. Besides, Lotus’s shot at an overnight leap from niche enthusiast brand to Ferrari and Porsche-rivaling juggernaut is so brazenly implausible, that Lutz actually lends credibility to the project. At least, he would do if he didn’t have that irrepressible knack for saying things like
People keep asking me if I’m sure the new plan will work, and of course I can’t guarantee that. It’s a risk. But I’m quite certain it stands a better chance than the Lotus status quo, which for sure would eventually lead this great brand into terminal decline
Lutz goes on to tell Autocar that Lotus’s billion dollar turnaround “a big gamble,” and admits that “a fair bit of showbiz” is driving Lotus’s quantum leap towards becoming a full-line sportscar and supercar maker. Does it sound like Lutz might have some mixed feelings about Lotus’s rush to trample its enthusiast credentials? More maximum mixed feelings below the fold.
Aston Martin’s decision to sell a worked-over Toyota iQ has raised some serious questions for “brand values” advocates across the internet of late. Does an aristocratic sportscar brand need to take on the problems of urban congestion and carbon intensity? Does the Cygnet’s noblesse oblige PR value outweigh the furor of countless Aston Martin aspirants at the thought of their beloved brand becoming a glorified Toyota tuner house? The answer to both of these questions is apparently yes…
(Read More…)
The last time Lotus trotted out an “Elite,” it was a funkily be-hatched, sports tourer which, at about 2,000 lbs, was already nearly a thousand pounds heavier than the sleek fiberglass coupe it replaced. Thirty five years later, the beat goes on: as part of its mainstreaming effort, Lotus is showing a new “Elite” concept at the Paris Auto Show that is the heaviest and most powerful model the brand has ever produced. At 3,700 lbs, and offering a hybrid five liter V8 (reportedly based on the Lexus LS600h drivetrain) and a folding hardtop, this Elite appears to be aimed at Ferrari’s California… and more generally, at people who don’t know who Colin Chapman was. Lotus CEO Danny Behar tells Autocar
Make no mistake, there’s a definite market requirement for the Elite. It’s the ultimate compromise of sports car feel with comfort and space. There will always be those who say Lotus should stick to small sports cars, but we didn’t take the decision to design something like the Elite lightly. It is based on months of careful research and planning.
What Behar apparently doesn’t get is that McLaren would be more than happy to take Lotus’s status as the preeminent British sportscar maker if it takes its eye off the ball for a second. And going from the Elise to the Evora to a full-fat, hybrid hardtop convertible tourer is quite the leap of faith for Lotus. Business is business, but brands are brands… and we didn’t realize just how mainstream Lotus was aiming for.
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