British sports car manufacturer, Lotus Cars, is going through some very rough times and if the things go according to the plans of Jean-Marc Gales, CEO, Lotus Cars, the company could axe 325 jobs, a quarter of their workforce. Based out at a former site of RAF Hethel, a WWII airfield, outside Norfolk, U.K., the Lotus had a history of financial downfalls, but this one is particularly bad.
It all started during the time of Dany Bahar, former Chief of Marketing, Ferrari, who during his stint in Lotus, tried to make it the British Ferrari. The idea crashed very badly and resulted in his exclusion from the company. A former racing giant, Lotus posted a loss of about 160 million Pounds in the financial year 2012-13 and it is trying to re-surge since that time.
According to Gales, the move is made to "achieve its business goals". He also said, that the cost saved from cutting the job will be utilized to "build a strong, sustainable future". He ended the speculation that new models are to be launched to end the financial crunch, specifically saying, that no new model will be added in a couple of years.
Lotus, had been on the Government grant many times and not less than a year ago, they were granted an amount of 10 million Pounds by the Regional Growth Fund for training, R&D, safeguarding 900 jobs and adding 313 jobs by the end of 2019. Currently lotus has a workforce of 1215 employees and cutting 325 jobs now means, they don't have to return the money to Government back.
Currently Lotus is producing five cars, namely, Elise, Exige, Evora, Eleven and Exos. They are also active in Formula1 with a Lotus F1 team. They have got a Lotus Engineering Division, which undertakes R&D activities for various companies, Jaguar and Tesla being the most famous. They are very active, when it comes to developing electric- hybrid vehicles and in the past, helped in the development of new technology.
We hope, that the Lotus soon returns to profit and the people don't lose their jobs. Lotus has worked with Jaguar on the C-X75 hybrid vehicle project. You can watch our story on the same here.