Lotus Cars

Early years The company was formed in 1952 as Lotus Engineering Ltd. by Colin Chapman but had earlier origins in 1948 when Chapman built his first trials car in a garage. The four letters in the middle of the logo represent Chapman's full name, Anthony Colin Bruce Chapman. When the logo was created, Chapman's original partners, Michael and Nigel Allen, were allegedly told that the letters stood for Colin Chapman and the Allen Brothers. The company moved to a purpose-built factory at Cheshunt in 1959, and since 1966 it has occupied a modern factory and road test facility at Hethel, near Wymondham in Norfolk. The site is a former World War II airfield, RAF Hethel, and the test track uses sections of the old runway. In its early days, Lotus sold cars aimed at private racers and trialists. Its early road cars could be bought as kits in order to save on purchase tax. The kit car era ended in the late 1960s and early 1970s, with the Lotus Elan Plus Two as the first Lotus road car not offered in kit form, and the Lotus Eclat and Lotus Elite of the mid-1970s were offered only in factory-built versions. With the Lotus Eleven, built between 1956 and 1958, the tradition of naming Lotus models with an “E” began. Allegedly, this was to avoid confusion with the Roman numerals (IX, X, XI, etc.) that had been used previously. Only a few exceptions to this tradition exist, such as the Lotus Seven. After the Lotus Elite of the 1950s, which featured a complete fibreglass monocoque fitted with built-in steel pickup points for mounting major components, Lotus found critical and sales success in the 1960s with the Lotus Elan. This two-seater was later developed to two-plus-two form (Elan +2S). Lotus was notable for its use of fibreglass bodies, backbone chassis and overhead camshaft engines, initially supplied by Coventry Climax but later replaced by Lotus-Ford units (Ford block, Lotus head and twin-cam valve gear). Lotus also worked with Ford on the Lotus Cortina, a successful sports saloon. Another Lotus of the late 1960s and early 1970s was the two-seater Lotus Europa, initially intended only for the European market, which paired a backbone chassis and lightweight body with a mid-mounted Renault engine, later upgraded to the Lotus-Ford twin-cam unit as used in the Elan. The Lotus Seven, originating in the 1950s as a simple, lightweight open two-seater. continued in production into the early 1970s. Lotus sold the rights to produce the Seven to Caterham, which has continued to produce the car since then. By the mid-1970s, Lotus sought to move upmarket with the launch of the Elite and Eclat models, four-seaters aimed at prosperous buyers, with features such as optional air conditioning and automatic transmissions. The mid-engine line continued with the Lotus Esprit, which became one of the company's longest-lived and most iconic models. Lotus developed its own series of four-cylinder DOHC engines, the Lotus 900 series, and later a V8, and turbocharged versions of the engines appeared in the Esprit. Variants of the 900-series engine were supplied for the Jensen Healey sports car and the Sunbeam Lotus "hot hatchback". In the 1980s, Lotus collaborated with Vauxhall Motors to produce the Lotus Carlton, the fastest roadgoing Vauxhall car. Financial troubles, death of Chapman By 1980, Group Lotus was in serious financial trouble. Production had dropped from 1,200 units per year to a mere 383. This situation resulted from the worldwide economic recession combined with the virtual collapse of sales in the American market and limited development of the model range. Looking to reenter the North American market, Chapman was approached by young law professor and investment banking consultant Joe Bianco, who proposed a new and separate American sales company for Lotus. By creating an unprecedented tax-incentivised mechanism by which each investor received a personalised Lotus Turbo Esprit, the new American company, Lotus Performance Cars Inc. (LPCI), was able to provide fresh capital to Group Lotus in the United Kingdom. Former Ferrari North America general manager John Spiech was recruited to run LPCI, which imported the remarkable Giugiaro-designed Turbo Esprit for the first time. American sales began to quickly jump into six figures annually. Chapman died of a heart attack on 16 December 1982 at the age of 54. At the time, both Chapman and Lotus were linked to the DeLorean Motor Company scandal regarding the use of UK Government subsidies for the production of the DMC DeLorean, for which Lotus had designed the chassis. Chasing large sums of money that had disappeared from the DeLorean company, Lotus was besieged by Inland Revenue inspectors, who imposed an £84 million legal "protective assessment" on the company. At the trial of Lotus accountant Fred Bushell, the judge insisted that had Chapman lived, he would have received a sentence "of at least 10 years." With Group Lotus near bankruptcy in 1983, David Wickins, the founder of British Car Auctions, agreed to become the new company chairman through an introduction by his friend Mark Thatcher. and Sir Anthony Bamford of JCB (12%). Wickins oversaw a complete turnaround in the company's fortunes, for which he was dubbed "the saviour of Lotus." International ownership Despite having employed designer Peter Stevens to revamp the range and design two new concept cars, by 1985 the British investors recognised that they lacked the capital to fund production and sought to find a buyer. On 24 May 2017, Chinese multinational Geely announced that it was taking a 51% controlling stake in Lotus. The remaining 49% was acquired by Etika Automotive, a holding company of Proton's major shareholder Syed Mokhtar Albukhary. In January 2021, Geely announced a joint venture with Renault–Nissan–Mitsubishi Alliance and its Alpine division to develop a range of electric performance cars sharing some of their future platforms. In April 2021, Lotus announced plans to produce only electric cars by 2028 and increase production numbers from around 1,500 per annum to tens of thousands. Geely and Etika Automotive provided two billion pounds (US$2.8 billion) to fund the changes. Lotus Technology Inc., the electric-vehicle division of Lotus, which has a different ownership structure (30% by Etika and the rest by Geely and Nio Capital), was listed on Nasdaq in February 2024, following the completion of a merger with a special-purpose acquisition company affiliated with L Catterton. After the listing, 10.3% of shares are held by the public. ==Operations==