KUALA LUMPUR: Malaysian conglomerate DRB HICOM is confident it can turn around loss-making sports car manufacturer Lotus in two to three years.
The company recently dispelled rumours it's selling off the British motoring legend by setting up its first regional showroom in Asia.
Spanning over 10,000 square metres, the Lotus flagship showroom located along Kuala Lumpur's Penchala Link is a haven for its fans.
On display are Lotus' latest sports car models, including its Formula One race car.
It also features the widest selection of Lotus accessories and merchandise, as well as a service centre, a club house, and a gallery documenting the iconic British brand's 60-year history.
The message is clear from its parent company DRB HICOM that Lotus is not for sale.
In fact, it has invested US$2.5 million to set up a regional flagship showroom and service centre, and set ambitious sales targets, as it officially launched two new models.
They are the Exige S and the Elise S, with a price range of between US$110,000 and US$150,000.
There's also the Evora, which offers a manual and an auto version.
Lotus, which is owned by Malaysia's national car manufacturer Proton, aims to sell up to 3,500 of these cars this year, especially in North America, China, Japan and Middle East markets.
It has so far received 600 orders.
The Chairman of Lotus Group International is a car enthusiast, and he is determined to nurse the heavily-indebted legendary sports car manufacturer back to health.
Mr Mohd Khamil Jamil, Chairman of Lotus Group International, said: "No doubt that the damage or whatever the situation at Lotus was quite severe, but nothing is short of repair. We reckon that with the expertise we have at Lotus and the expertise that we have in Proton, we can work together and synergize and make Lotus into a profitable company which is commercially driven.
"Unfortunately, during the 15 or 16 years or so that Proton had gotten Lotus within their wings, they have not explored as much as possible to make use of whatever benefits they could derive from Lotus."
On how much time needed to turn around the company and to stop Lotus from bleeding, Mr Mohd Khamil said certain culture and practices entrenched in Lotus needs to be changed.
"Right now, I think we have reduced quite substantially in terms of overheads alone. We have reduced by more than one million pounds a month. And I believe with the astute management by the team now, we can reduce it even further. At the end of the day, I reckon that we may take about two to three years for us to ensure that Lotus can be sustainable," he said.
With a new management at the helm, Lotus aims to slash its costs by 25 per cent, and rev up its marketing campaigns to improve its visibility and sales worldwide.
- CNA/de
Malaysian conglomerate confident of turning loss-making Lotus around
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Malaysian conglomerate confident of turning loss-making Lotus around
