Proton seeks financing for Lotus’ five-year transformation plan
By Andrew, 30 Jan, 2011. 0 Comments
2013 Lotus Esprit
Talks are ongoing between Proton Holdings and CIMB and several other domestic banks to be granted a substantial loan in the amount of £480 million ($768 million) to spend on Group Lotus’ five-year transformation plan. Proton Managing Director Datuk Syed Zainal Abidin told Malaysian reporters at the Lotus headquarters in Norfolk, England, that the majority of the funds would be in the form of bank loans borrowed by Proton on behalf of its wholly-owned subsidiary. Abidin said that by itself, Group Lotus is unable to raise that amount and this is why Proton came in as the entire five-year turnaround exercise has to benefit the whole group.
Abidin added that they anticipate that the loan agreement will be signed next month as there are discussions with several banks including the company’s own banker CIMB. He said that the company is “confident” that Group Lotus can be turned around as it has five new Lotus models that will start production by 2012.
Lotus estimates that to attain the break-even point by 2014, annual sales have to reach about 8000 units of the five all-new models. An all new Esprit is the first to arrive; it will launch sometime next year. Lotus has reeled in a number of key executives from rival manufacturers who are now tasked to build their new dream cars.
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