Lotus shocks, heads toward profitability as fiscal year closes

2016 Lotus Elise Race 250

2016 Lotus Elise Race 250

Lotus has pulled a money-laden rabbit from its top hat. With the results of its 2016/2017 fiscal year, Lotus Group International Limited’s operations are heading toward profitability. At the close of the fiscal year, Lotus posted a positive earnings before interest, tax, depreciation, and amortization (EBITDA) of $2.6 million. In the 2015/2016 fiscal year, Lotus posted a loss of $21.6 million with EBITDA factored in.

Things moved in a positive direction with the sports car maker’s profit before tax figure as well. Lotus reported a $14.54 million loss, up from a whopping $53.49 million loss in 2015/2016. With this news, Lotus said it’s poised for success as it enters the 2017/2018 fiscal year and expects to return a full profit next year.

Despite its losses, Lotus has been focused on updating and revising its product portfolio of Evora, Exige, and Elise models. Additionally, it opened dozens of new dealerships around the world. In 2014, the brand had 138 dealers. Today it has 215.

“Our vastly improved profitability, together with an increase in revenue means that for the first time in many years Lotus is now a self-sufficient and sustainable business,” Jean-Marc Gales, CEO, Group Lotus, said.

The figures also come soon after Chinese automaker Geely agreed to purchase a 49.9-percent stake in Lotus’ parent company, Proton, this past May. As part of that deal, Geely took 51 percent ownership of Lotus. Geely also owns Volvo, which has seen a tremendous turnaround following its Ford ownership.

With the deal, the possibility of future Volvo suspensions tuned by Lotus is on the table as well. “I don’t see any problem using their knowledge. I think it is pretty applicable all over the board. You need to have a dialogue—you can exchange knowledge back and forth,” a Volvo engineer said in the past.

Lotus reiterated its positive feeling over the Geely majority stake and believes it will continue to flourish under its new owners with “sensational” new vehicles coming in the near future.

Check Also

Subaru reveals pricing for BRZ tS and WRX STI Type RA, only 1,000 cars planned

Subaru has a pair of exciting performance machines available for 2018 but you had better be quick as each is limited to just 500 units. The cars are the 2018 BRZ tS and WRX STI Type RA, and they come with a number of enhancements developed by Subaru's STI performance arm. The BRZ tS is priced from $34,355 while the WRX STI Type RA is priced from...

Oregon-based Samson promises "flying sports car" for next year

If Oregon-based Samson sticks to its timeline, there will be a real flying car on sale next year. Samson revealed the Switchblade Wednesday and promises the functionality of a regular car and the ability to take off and fly in one package. The company's creation is a three-wheel vehicle with a 1.6-liter V-4 gasoline engine with about 190 horsepower paired...