Lotus Group CEO Mike Kimberley has criticised government policy and red tape that he claims is harming business and making the UK less attractive as a location for manufacturing cars.
He says that Lotus has had to put on hold the development and sale of a specialised export version of its sports car because of the high cost of red tape imposed by local and national government.
Kimberley told just-auto: “When I rejoined Lotus as chief executive [two and a half years ago] the Lotus Europa and Esprit were to be built in Malaysia. I am under tremendous pressure to move production off-shore.
“We have resisted that but there is such a lack of recognition by Government of the wealth-creating potential of car and technology industries in Britain. It is soul destroying.
“Business is on a roll here, and I was going to hire another 57 people but have now had to cancel one of the model variants because of the escalating costs and obstacles heaped upon us.”
Kimberley cited a number of examples of bureaucracy and red tape that have impacted Lotus, including the failure of a planning application to build a small wind farm that would have made the factory site in Hethel self-sufficient in low-cost energy.
“It is quite absurd. There is nothing around us here in the arable part of Norfolk to protest other than acres of swedes and a few pheasants.”
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Planning permission was eventually granted after a long and expensive appeal.
Then came a local authority rates assessment that imposed a GBP159,000 increase on the previous year – the money being taken straight out of the company’s bank account through the direct debit arrangement. Kimberley has protested to local MP Richard Bacon.
He also says a pension levy came out of the blue. “It was for GBP706,000.”
“Our parent [Proton] is being very supportive. They have recapitalised Group Lotus to the tune of GBP60m and are investing a further GBP60m over the next two years. But they have their limits and the failure of the legislatures to create a supportive environment is very unhelpful to our plans to expand in the UK.”
Rob Golding
See also: UK: Lotus turns a small profit
