Post by Admin on Jun 25, 2017 8:21:33 GMT -5
www.autocar.co.uk/car-news/new-cars/lotus-production-could-begin-china-says-geely-owner
Lotus production could begin in China, says Geely owner
Geely’s acquisition of the Lotus brand could mean production beginning in China, chairman Li Shufu suggests
by Jimi Beckwith
23 June 2017
Production of Lotus cars may have a future in China following the brand’s acquisition by Chinese car company Geely.
Geely chairman Li Shufu said that the priority of the deal is to make Lotus and parent company Proton, which was also acquired by Geely, profitable, reports Bloomberg. It was not mentioned whether Shufu referred to one model or multiple, however.
While Lotus posted a profit for the first time in 20 years this year, its foothold on the UK market is tentative, with sales having fluctuated in recent years.
Although an outright move of production of a model or models is not confirmed, it's not off the table, given the movement of Volvo S90 production to China late last year by Geely, as well as the cheaper cost of production there.
Despite the Chinese production potential, it’s expected that Lotus’s headquarters will remain in the UK, just as Volvo’s remained in Gothenburg, Sweden, following its takeover by Geely.
Shufu also said that electrification, further lightweight and artificial intelligence were priorities for the Lotus and Proton brands, as it looks to use Proton’s knowhow to conquer the South East Asian market.
It’s possible that as Lotus looks to build its car line-up with its first ever SUV, a notably more profitable model for other brands, Shufu could be looking to boost these profits with reduced production costs of a Chinese plant. Lotus's lower-volume market than Volvo's could also be a catalyst in the decision.
Lotus production could begin in China, says Geely owner
Geely’s acquisition of the Lotus brand could mean production beginning in China, chairman Li Shufu suggests
by Jimi Beckwith
23 June 2017
Production of Lotus cars may have a future in China following the brand’s acquisition by Chinese car company Geely.
Geely chairman Li Shufu said that the priority of the deal is to make Lotus and parent company Proton, which was also acquired by Geely, profitable, reports Bloomberg. It was not mentioned whether Shufu referred to one model or multiple, however.
While Lotus posted a profit for the first time in 20 years this year, its foothold on the UK market is tentative, with sales having fluctuated in recent years.
Although an outright move of production of a model or models is not confirmed, it's not off the table, given the movement of Volvo S90 production to China late last year by Geely, as well as the cheaper cost of production there.
Despite the Chinese production potential, it’s expected that Lotus’s headquarters will remain in the UK, just as Volvo’s remained in Gothenburg, Sweden, following its takeover by Geely.
Shufu also said that electrification, further lightweight and artificial intelligence were priorities for the Lotus and Proton brands, as it looks to use Proton’s knowhow to conquer the South East Asian market.
It’s possible that as Lotus looks to build its car line-up with its first ever SUV, a notably more profitable model for other brands, Shufu could be looking to boost these profits with reduced production costs of a Chinese plant. Lotus's lower-volume market than Volvo's could also be a catalyst in the decision.