GEELY MAY INVEST £1.5 TO REVIVE LOTUS CARSb
KUALA LUMPUR: The Chinese owner of Lotus Cars is considering an investment of at least £1.5 billion (RM7.8 billion) to revive the iconic British marque featured in James Bond movies, according to people familiar with the matter.
Zhejiang Geely Holding Group Co, which also controls Volvo Car Group, planned to add production facilities and research centres for Lotus Cars in the United Kingdom, said one of the people.
Geely was also in talks with its Malaysian partner, Etika Automotive Sdn Bhd, to increase its 51 per cent stake in Lotus, said another person.
The investment plan is part of billionaire Li Shufu’s grand vision to transform Geely into a leading carmaker rivalling Toyota Motor Corp and Volkswagen AG.
Li’s group acquired Volvo in 2010 and spent more than US$11 billion (RM44.7 billion) to modernise its factories and help turn around the Swedish brand.
In February, Li emerged as the biggest shareholder in German luxury carmaker Daimler AG with an almost 10 per cent stake.
Under Geely’s proposal, the first phase would involve an expansion of Lotus’s Hethel plant with the hiring of 200 engineers, according to one of the people.
Later, it planned to set up a second factory in the UK and add a new design and innovation centre, said the person.
Geely acquired the Lotus stake from Proton Holdings Bhd last year when it also announced buying 49.9 per cent of Proton.
Li said last year Geely would consider producing Lotus sports cars in China.
It is hoping to build Lotus as a luxury nameplate that competes with Porsche and Ferrari.