Analysts Urge Proton To Sell Lotus After 15 Years Of Failure In Realizing A Profit

Everything seems wrong for Proton, considering the fact that after 15 proud years of purchasing Lotus Group, there is absolutely no profit at all.

Although Proton’s action of purchasing the Norfolk-based sports carmaker one and a half decade ago brought some “nur” (light) towards Proton’s engineering department especially when we talking about engine making and the tagline “Lotus Ride and Handling” on some of Proton cars seemed promising, we still can’t deny the fact that Lotus is actually burdening its parent company for 15 years and the situation is likely to be continued at least until the year 2014 according to some analysts.

“It will make sense for them to sell it,” equities investor Gan Eng Peng explained to Bloomberg. “Proton and Lotus are not a good fit. They are in different market segments, both in terms of geography and product.”

Lotus sales are struggling everywhere including in the UK. Lotus only only sold less than 2000 cars last year, they need at least 6000 more cars to be sold in order to gain profit. In its homeland, less than 300 vehicles were registered in the first eight months of 2011, achieving 24 percent down in market comparing with 358 cars were sold last year in the same period.

“The only thing we can do is show the current owners, or the new owners, that we are absolutely in line with the business plan that we have presented,” Bahar, who’s based in Norfolk, U.K., said in an interview with Bloomberg last week. “Without the funding support and the guarantees given by the Proton group, we would not survive, end of story.”

source: Bloomberg

Posted in: Proton, Speculations