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Volkswagen Offered £1 to buy Lotus and Take on All Debt

Lotus might pull out of a large amount of its racing

More bad news from LotusLotusUnited Kingdom, 1952 > present68 models
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today. Since its parent company, ProtonProtonMalaysia, 1983 > present9 models
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, was sold to investment company DRB-HICOM, the future of Lotus has seemed very unclear. Then a few weeks ago, the company's CEO Dany Bahar was quickly fired for allegedly misuing company funds. News out today suggests that Lotus has given up on its “five-year, five-car” plan of launching five new cars in five years. Those cars were due in 2015. Instead, Lotus will build just the EspritLotus EspritUnited Kingdom, 1975 > 20046 series
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supercar in 2014. According to Reuters, in addition to dropping the plan for new cars, Volkswagen offered DRB-HiCOM £1 to buy Lotus but take on its entire roughly €250 million debt.

According to Reuters, Volkswagen is also looking to buy Proton as either a complete owner or minority holding. Buying Proton would give Volkswagen a jumpstart into the Malaysian market and by extension Southeast Asia in general. If Volkswagen bought Proton, it would also be able to use its factories to build its own cars in Malayasia. Volkswagen had attempted to buy Proton in 2007, but it fell through because the government wanted to keep the company partially state owned. Volkswagen refused, but now Proton is private. That might make the company more attractive for them to purchase.

It appears that Volkswagen was looking at buying Lotus because it is such a good deal. It could potentially pick up the company for a low price and incorporate it into its massive brand.

DRB-HICOM also wants to reduce Lotus's racing investment. That could spell doom for the Lotus Evora GX that it revealed yesterday for the Grand-Am Racing Series. The team said that it had two orders for that car already. Lotus has alreday announced that it will no longer supply engines to the IndyCar Series next season.