Jobs losses at Lotus Cars

19 September 2014

It looks as if Lotus is struggling again.  The company has announced that there will be likely around 300 redundancies, many of them compulsory, as it looks to cut costs in its 1400 strong workforce.  

The company has been loss making for many years and has often struggled with high costs that has left its cars expensive when compared to the competition.  As recently as last year it had a winding up petition issued against it, which was settled, but it was an indication of trouble at the company.  

Lotus is a wholly owned subsidiary of the Malaysian group DRB-Hicom. in 2011 it hired an ex Ferrari executive to try and revitalise the business but he was sacked after a dispute over expenses.  Lotus has also struggled against revitalised brands such as Porsche, Jaguar, and Japanese manufacturers.  New rules on emissions and safety has also eroded their ability to make cars at low cost with lightweight racing in their "DNA".  The failure to launch a new Esprit model, the iconic 007 car, is a also a big disappointment to many.  

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “This is very disappointing news and we extend our sympathies to the staff and their families potentially affected by this. The long-term prospects for the UK automotive sector remain positive, however, with car production set for record volumes in the next few years."