Lotus secures $17M grant from British government

November 30, 2013
Troubled Lotus has secured a £10.44 million (roughly $17 million) grant from the British government’s Regional Growth Fund, a program designed to create jobs in the United Kingdom. Former COO Dany Bahar applied for the grant earlier this year before being ousted from the company.

The automaker has previously announced it is not planning on launching new models in the immediate future for a slew of financial reasons, so it will use a big chunk of the grant to improve its existing Exige, Evora and Elise sports cars and launch new variations such as the track-only Elise S Cup R.

Long dependent on the United States and its home country, Lotus is eager to expand its operations to lucrative markets in Asia and in the Middle East. It sees improving the build quality, handling and performance of its lineup as the best way to return to lure new buyers into showrooms and generate high profit margins.

“This grant is part of a wider strategy for Lotus created to ensure we thrive and grow. We are responding to increased global demand for our cars and engineering consultancy services and this grant will help to position Lotus at the forefront of global automotive innovation,” explained Lotus CEO Aslam Farikullah. “We’re in a position to create new jobs and to significantly contribute to Britain’s automotive industry,” he added.

Earlier this year, Lotus owner DRB-HICOM injected £100 million (about $163 million) into the automaker to help it hire 45 specialist engineers, 40 manufacturing operatives and 18 college graduates. The new recruits have been put to work on Lotus’ sports car programs and engineering projects for other companies.

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