The story of Geely entering the Western market began a positive one. It has been showered with praise for how it handled Volvo for its first decade in charge, making it a mainstream premium player more than ever before.
But as time has gone on, there’s been little evidence to back up that early success with other western brands. Polestar, though engineering decent cars, is hugely loss-making; Volvo is undergoing painful cuts after becoming too bloated itself; and then there was the delayed EX90 launch, and even when it did come, it still wasn’t ready.
Geely’s acquisition of Lotus began brightly: Lotus was in dire straits and Geely swooped in to save the day. In the early days, things were looking up. It built gradually, invested in Hethel and the Emira and let the Lotus brand be resplendent in its sports car heritage.
But then it opened a new design centre in the Midlands, the first sign that Hethel was no longer Lotus’s raison d’être, and announced new models which were essentially Chinese-developed and built EVs. These were rushed through for the anticipated demand of luxury electric SUVs and saloons – a demand that is yet to come. In doing so, it weakened the heart of Lotus, demoting Hethel, its people and expertise.
Geely’s sizable funds haven’t been wisely placed either. It brought in executives above those already there, people who had no reverence for the brand, and opened lavish facilities including in London and Amsterdam, creating yet more disconnect between the Lotus we all know and love. This profligacy was only made worse by unachievable targets for its EV sales, which were all missed by a mile.
This latest news hit the automotive industry hard when it broke last Friday. There has clearly been back-and-forth with the UK government, Geely and Lotus, so while Geely is adamant that Lotus has a place at Hethel, time will tell.
One thing’s for sure: Geely has managed it badly and might have ultimately caused the demise of one of UK automotive’s most lauded locations.
Join the debate
Add your comment
In my opinion, the biggest problem for Lotus in the UK is the dealer network. I requested a test drive of the Electre in November via the national website. I chased it up about a week later. I was informed that someone would get in contact. In early December, I called the dealership direct, that is the dealership in Leeds-I am in Newcastle-and they told me they had no demonstrators available, but would be in touch when they got one. I called again in January and they still didn't have a demonstrator, so I ordered a Range Rover Sport instead. There is no point having a great car, which the Chinese electric models definitely are, if you don't have the dealer work to back it up.
I've read this piece a few times now, and the writer hasn't answered her own question.The truth is even before Geely took over Lotus management has ALWAYS been atrocious. And I maintain, considering the easing off electrification now, that Dany Bahar's strategy was actually largely correct! With the caveat of-course of being able to adopt electrification.
A fundamental problem for me is the positioning of brands within the Geely empire. So there's one 5 door £100k GT supposedly coming out on a fairly bespoke platform and another similar vehicle but on more of a shared Geely platform.
So how come Polestar get the bespoke platform for the 5, surely that should be Lotus opportunity to shine?