Managers at Lotus believe that up to 1,200 new jobs could be created under plans to add models and expand output at its UK operations base.
During a visit to Lotus headquarters at Hethel, Norfolk, made by UK Secretary State for Business Vince Cable this week, Group Lotus CEO Dany Bahar held out the prospect of future employment growth in spite of some short term job losses.
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“In five years we should grow between 600 and 1,200 jobs,” said Bahar.
However, a Lotus spokesman told just-auto that the company is also taking steps to improve efficiency and ready its cost base ahead of future investment and that is resulting in some job losses this year. “We are simply ensuring that our cost base is as lean as possible in relation to current business needs,” the spokesman said. “The workforce will grow again in the future as output rises in line with our business plan.”
The Norfolk based company is embarking on an ambitious GBP500m expansion plan funded mainly by its parent company, Proton, oil company Petronas and a consortium of Malaysian banks to turn it into a rival for Porsche. The company has unveiled a raft of future models to enable it to compete in more segments of the sports car market and triple vehicle output to a level approaching 10,000 units a year.
Although Lotus was unsuccessful in an application for a GBP27.5m grant from the Regional Growth Fund (RGF), which would have allowed it to release capital previously allocated to R&D to build a new production plant, it has now applied for a GBP10.4m loan from the RGF.
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By GlobalDataDuring his tour of the Lotus facilities, Vince Cable was shown the design and styling studio with the future product line up as well as the current car production lines.
Commenting on his visit to Group Lotus, Cable said: “Lotus is a very successful company, it’s doing very well – exporting a lot – with a lot of ambition. I’ve seen the new models and I believe that this is the best of British industry with very high levels of skill and engineering quality.
“I welcome the growth and change in Lotus, it’s a vote of confidence in the UK and in their work force, they have very high quality people here doing apprenticeships and they clearly believe in what they’re doing and they make great products so I really wish them well.”
See also:
UK: Lotus confirms funding for new models
UK: Lotus CEO sets out ‘British Porsche’ strategy
