Report: Proton looking to sell Lotus to raise more capital

Report: Proton looking to sell Lotus to raise more capital image

Text: Marcus De Guzman / Photos: Lotus | posted September 29, 2016 07:51

Selling of majority stake, Lotus brand eyed by Proton

The brand known for making lightweight fiberglass sports cars may soon exchange hands once again. DRB-Hicom, parent company of Proton and Lotus, is apparently looking to sell a majority stake in Proton, along with Lotus as a way to further build up revenue for the embatlled Malaysian automaker.

Based on reports, DRB-Hicom had already contacted about 20 automakers earlier this year. So far only Peugeot, Renault and Suzuki have shown interest in buying Lotus. It is unclear however as to what kind of proposals the three automakers made to DRB-Hicom.

Currently Proton has two factories in Malaysia that are under capacity. Proton originally targeted production at 400,000 cars per year, but the two plants are only producing 102,000 units combined; only a quarter of its intended goal.

Today, Lotus is in a rebuilding phase, it offers three core models: the Elise, the Exige and the Evora. But the company is looking to expand their product lineup with a new SUV that will reportedly be both sleek and agile.

Currently at the helm is Jean Marc Gales, who was appointed CEO back in May 2015. He replaced Dany Bahar who was sacked in 2012 after allegedly misappropriating company funds to refurbish his house and other properties.

Source: Automotive News Europe