Proton takes over carmaker Lotus<\/p>\n
By Russell Williamson<\/p>\n
MALAYSIA'S national carmaker, Perusahaan Otomobil Nasional
\nBerhard (Proton), has paid nearly US$84 million for 80 percent of
\nBritish sports car manufacturer, Lotus.<\/p>\n
The buyout includes the sports car division and the much-
\nacclaimed engineering department, which has already done work for
\nProton.<\/p>\n
The chairman of DRB-HICOM, group Proton's parent company, Tan
\nSri Yahaya Ahmad, speaking at the announcement of the deal in
\nEngland earlier this month said: \"We see our strong partnership
\nin a very positive light, mutually benefiting both Lotus and
\nProton.\"<\/p>\n
\"In concluding the deal, both companies are aware that they
\ncan draw from each other's strengths and make us more
\ncompetitive,\" he said.<\/p>\n
Proton purchased the company from its Italian owner, Roman
\nArtioli's, ACBN Holdings SA, who had, in turn, bought the loss-
\nmaking company from General Motors in 1993.<\/p>\n
Roman, who maintains control of the remaining 20 percent of
\nGroup Lotus, had been negotiating the sale of Lotus with a number
\nof companies, including Daewoo, and had suffered badly from the
\nfailure of his other Italian supercar venture, Bugatti.<\/p>\n
Although Lotus scraped through with a small pretax profit last
\nyear, industry analysts suggested that the company needed a
\nsubstantial injection of cash from a new partner or a new owner
\nto survive.<\/p>\n
The takeover of Lotus by Proton will allow the Malaysian car
\nmaker to reduce its dependence on its Japanese partner Mitsubishi
\nMotors Corp and further develop new models in-house.<\/p>\n
The significant cash injection will also allow Lotus to double
\nits production of the new small two-seat roadster Elise to 5000
\ncars a year, which will be split between production in the United
\nKingdom and Malaysia.<\/p>\n
This increase will help the company make a serious assault on
\nnew markets in Asia and have another go at North America.<\/p>\n
The 1.8-liter Elise, which features a lightweight aluminum
\nchassis, is priced about US$30,000.<\/p>\n
Lotus engineering, which will continue to do work for other
\ncarmakers, has already been involved in developing a new car for
\nProton. This model is expected to go on sale in Malaysia next
\nyear.<\/p>\n
Lotus Engineering has also done work for General Motors,
\nNissan, Mazda and Isuzu.<\/p>",
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