DRB-Hicom Says………Lotus Needs To Work Fast On Their Sales
At the DRB-HICOM Bhd EGM yesterday it was tabled that they will review its options for Proton’s UK sports car company Lotus after it completes the acquisition of the national carmaker. At the EGM, 99.9 per cent of shareholders voted in favour of the proposal to buy a 42.74 per cent stake in Proton and undertake a mandatory general offer for the shares it does not own in Malaysia’s national carmaker. On mention of Lotus, DRB-HICOM group managing director Datuk Mohd Khamil Jamil said ‘until today, we have not been fully informed about the situation at Lotus. The options are to whip up and make Lotus work or they have to bear the consequences.’
Datuk Mohd Khamil Jamil mentioned that DRB HICOM were ‘concerned’ about Lotus’ operations and would weigh up its options, that may include a management change or an outright disposal of the sports car unit. It has been widely reported in the Malaysian press that DRB would undertake due diligence once the purchase of Proton was completed. Many auto industry observers in Malaysia have commented that DRB should cut loose Lotus and concentrate on a turnaround plan for Proton. Proton have been restructuring operations at Lotus Group recently and have supported Lotus plans to introduce up to five new models over the next four years, this has meant spending heavily including expenditure on branding in a variety of motor sport categories.
Datuk Mohd Khamil Jamil re-iterated that DRB will go to Lotus and review the existing business plan. He said: ‘We have to be fair to Lotus. We have to see if its transformation plan is successful.’ However, he also stressed ‘but looking from the outside, I am concerned about Lotus’. Would the Volkswagen group buy Lotus from Proton in the future?
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