National carmaker Proton has secured GBP270m (US$440m) to fund a five-year turnaround at its loss-making British-based unit Group Lotus.
Proton managing director Syed Zainal Abidin Syed Mohamed Tahir said the loan would be provided by six banks led by Malaysia’s CIMB Bank, AFP reported.
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“The GBP270m will primarily be used for product development,” he told reporters, adding that “part of the loan will be used to upgrade the Lotus facilities in Norfolk” in England.
Group Lotus – which Proton took control of in 1996 – aims to boost production to about 8,000 cars a year after 2013 by launching five new models under its five-year plan.
The other lenders are top bank Maybank, Overseas-Chinese Banking Corporation, Export-Import Bank of Malaysia, Affin Bank and EON Bank.
Proton last June announced the five-year Lotus plan, including a new management team and projects to launch new models and boost production.
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By GlobalDataGroup Lotus CEO Dany Bahar said the new financing would enable the automaker to introduce much needed new models to bolster sales. It unveiled five new models last September – Esprit, Elan, Elite, Elise and Eterne.
Bahar said the new Esprit was expected to be rolled out in March 2013 and hoped it would help Lotus break even in 2014. It currently sells at least 3,000 units a year with two models.
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