Geely edges closer to Lotus 'rescue'

Zhejiang Geely Holding Group's purchase of Lotus is expected to conclude this month.

In June, we reported that iconic luxury British car brand Lotus was potentially going to be taken over by Geely Motors of Hangzhou.

Lotus has produced some iconic cars, but has struggled financially in recent years. [Photo: VCG]

That deal, which is actually part of Geely's wider purchase of Malaysian company Proton, the current owner of a majority stake in Lotus, is now expected to conclude this month.

The move has been welcomed in the British press, where it's been described as nothing short of a 'rescue' bid by Geely.

Apparently, in recent years, Lotus had been selling as few as 11 cars every month, although that figure has now picked-up.

Geely has already revealed some of its plans for both Lotus and Proton.

The number one focus of the company will be to restore Lotus and Proton to profitability. This is understood to potentially include moving production of some models to China.

If that does become the case, then Geely will be aiming to build the Lotus brand in China not just in a physical sense. Specialist publication Autocar has reported that a new model line-up could include the first ever Lotus SUV and even an electric Lotus to appeal to Chinese consumers.

Zhejiang Geely Holding Group, to give the company its full name, is based in Hangzhou and also manufactures cars under its own brand, as well as being the parent company of the London Taxi Company and Volvo.

The purchase of Proton, alongside the stake in Lotus, will give Geely another brand with established access to the UK, European and US markets.

Proton had been struggling to maintain a market presence in these areas over recent months, with the firm having all but abandoned its UK dealer network.