Proton will not sell Lotus
Malaysiakini
Sep 22, 2006

Ailing automaker Proton today said it would not sell its British-based sports car outfit Group Lotus, which is experiencing falling sales in the United States.

"We definitely will not hive off Lotus. We will make sure that the (five-year) turnaround plan goes on well," Proton managing director, Syed Zainal Abidin, told reporters.

Group Lotus has embarked on a five-year strategic plan which aims for growth in the company's engineering business as its pursues strategic pacts with other auto firms.

Proton and Group Lotus announced on Wednesday Lotus would cut jobs at its plant in Hethel, Norfolk, with British reports saying some 200 jobs would be lost out of its workforce of 1,200.

Group Lotus attributed the job losses to a slowdown in the US - the company's biggest market.

Bought by Proton 10 years ago

Its chief executive, Michael Kimberley, said Lotus had to pursue cost reduction measures to strengthen the company's efficiency and planned to "right-size" its workforce through a voluntary exercise by the end of the year.

"This will mean that a leaner, more cost effective and efficient Lotus will be far more globally competitive," he said in a statement Wednesday.

The job cuts are the latest scaling back at Group Lotus, which was bought by Proton 10 years ago.

Kimberley, however, said Lotus would launch three models in the next three years, which are a new Esprit, a mid-range Lotus model and a Lotus/Proton high-performance vehicle.

Proton acquired an 80 percent controlling stake in Group Lotus in October 1996. The firm produces high-performance sports cars as well as automotive engineering consultancy services.