UK declines Lotus’ loan request

Article by Christian Andrei, on April 15, 2011

The UK government declined a £27,5 million (EUR31,000,000 or $45,000,000) loan that Lotus requested so that it can construct a new factory for its new concept cars.

Because of Lotus’ failure to get a portion of the UK Government’s Regional Growth Fund (RGF), it will have to produce vehicles, including the new Esprit, outside the UK. Lotus applied for the loan last January.

It actually comes as a surprise that the Department for Business, Innovation and Skills (BIS) rejected Lotus’ application since the BIS had no trouble approving funds worth £450 million (EUR 508,000,000 or $735,000,000) for Jaguar, Land Rover, Bentley, GM, and other carmakers.

Included in Lotus' new model range are the new Elan and Esprit models, which were shown off as concepts at the Paris Motor Show last September.

Lotus said that it is considering other available options. Group Lotus may submit an updated bid for round two of the RGF, which is scheduled to close on July 1.

Because of the lack of funds, Lotus could transfer some production to Austria, in Magna Steyr, which is where Aston Martin's Rapide model and Porsche's Boxster are produced.

The new Lotus Esprit, which features an all-new supercharged V8 powerplant, will arrive in the market around 2013. Lotus’ next move is to start production of the new Elan model. Meanwhile, Lotus has put on hold three projects: the new Elise, Eterne and Elite.

Topics: uk, lotus

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries