By on May 1, 2015

Lotus Evora S Circa August 2013

After going broke for so long, Lotus Cars CEO Jean-Marc Gales says his company will be back in the black by March 2017, when FY 2016 ends.

To do this, Gales implemented cost-cutting measures while improving the current lineup to help increase sales and profits, Automotive News Europe reports. In the short term, this meant making some changes to the automaker’s offerings, such as adding an automatic transmission to the Exige, and refocusing the facelifted U.S.-bound Evora to better compete against the Porsche 911 and Audi R8. Gales said the U.S. would be the Evora’s biggest market as it leads the charge back to these shores after federal crash standards kept the model out for 2015.

At home in Hethel, England, 260 were cut from the workforce of 1,250, less than the 325 Gales had planned to cut in September 2014. The CEO also cut back consulting and engineering work conducted by Lotus Engineering, focusing the engineering arm on developing the automaker’s lineup, as well as combing through the supply chain to replace larger suppliers with smaller ones.

On the sales front, 2,015 cars left the showroom floor during FY 2014, an increase of 55 percent compared to the previous year’s 1,403; Gales is aiming for 3,500 sold by 2016. The increase is helped by an expansion of its dealerships, which stood at 174 at the end of March. He said his goal is to have 200 by the end of 2015.

As for profits, Gales said that losses were “massively reduced” compared to FY 2014’s £65.6 million ($100 million USD), and FY 2013’s £159.4 million ($242.2 million). He adds that he expects to see a profit for Lotus by the end of FY 2016, an experience the company hasn’t had “from the car side in over 20 years.”

[Photo credit: Vetatur Fumare/Flickr/CC BY-SA 2.0]

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16 Comments on “Gales: Lotus Will Show Profit By End Of FY 2016...”

  • avatar

    Make larger, more spacious coupes that resemble Lamborghinis or Other supercars and I can guarantee you profits.

    Keep making stupid small cars for short people and you fail.

    • 0 avatar

      Your lack of knowledge and understanding knows no bounds

      For example the Evora is roomier inside for tall drivers than a 911. Just for starters.

      And Lotus is still selling cars in Europe, where folks don’t feel the need to fool strangers about their penis size with the car they drive.

      What Lotus really needs is a sedan and sadly an SUV. Sedan would be soemthing in the vein of a Panamera or A7, but a size smaller and around 3500lbs with the supercharged V6. SUV would be something like the Macan, but based on the aforementioned sedan and hopefully under 4,000lbs. They would have to be dynamic but they would also have to be easy to live with, roomy, good looking and high in content and value. A tall order but doable.

      More sports cars would only doom them, and in any case between the Exige V6 and the Evora they can’t do any better. Those “stupid small cars” are the best sports cars on sale at the moment… for people who enjoy driving, not posturing.

      • 0 avatar

        #1 Anyone who praises an Accord for any reason in no way can ever lecture me about anything at all – beyond subprime car loans and repossessions.

        #2 LOTUS NEEDS LARGER, MORE SPACIOUS CARS with powerful engines (Twin Turbo V6 wouldn’t be bad) that resemble supercars no one can actually afford.

        #3 RWD would be great for the cars. An AWD small SUV might be nice…or, build a sexy hatchback with enough space for a family of 4.

        That’s right. That’s how you win.

  • avatar

    Or install an engine there that would convince me to fold myself into the seat. Like a LS (or LT) smallblock chevy.

  • avatar

    Whatever you might want to say about Lotus’ former director Dany Bahar, he did leave behind some interesting prototypes, particularly when it comes to how the rear end of future Lotuses may look like. Instead of the disastrous restyling of the new Evora, Lotus should have pasted the back end of the Elan or Esprit prototype onto the Evora. A missed opportunity!

  • avatar

    I don’t think a future Lotus enthusiast/buyer would want an automatic transmission, may as well buy a Kia.

  • avatar

    Lotus profitable in a couple of years? Yeah, sure they will be!

    I give you the words of Lewis Carroll: “Jam tomorrow and jam yesterday – but never jam today.”

  • avatar

    The current Lotus lineup is too niche. The Elise/Exige (where they are still sold) is too hardcore and the Evora is more expensive than its main competitor (Cayman).

    The industry will never become any easier for a small boutique company to make cars that are compatible with both US and EU regulations.

    Lotus needs some volume, cue a revived Elan.

  • avatar
    Ron B.

    SUV? Cross over? are you people stupid? This is Lotus, not a bloated and greedy porsche we are talking about here. Just like Morgan,they don’t need to sell to the proletariat ,they have their market and it is expanding. But to think they are going into profit is to listen to the accountants employed there. There will be no paper profit unless there is a radical change in the way taxation laws are applied.

    • 0 avatar

      Those bloated SUVs pay for their bloated sports cars. That’s life.

    • 0 avatar

      Perhaps prolitariat is the wrong word…
      Lotus makes cars for serious gearhead car people, many of which don’t have much money but huge passion. When they make cars for the 95th percentile and midlife crisis people is when Lotus may as well badge engineer Kias or Toyotas.
      If you need to buy a car from a dealer with a fancy showroom, just to get something plush with wonderful road test numbers.

  • avatar

    For Lotus to become profitable, the new Evora has to be good where the current one isn’t: fit and finish, vastly improve ingress and egress and better cabin layout. The other key is pricing. Fortunately for Lotus, the GT4 is sold out, but there still is the F Type R and the 911.

    But the car looks promising. A roadster version could sorely tempt me after my sports car is paid off

  • avatar

    If they study the Kia Sportage – and make it that much better – it would be fantastic.

  • avatar
    MRF 95 T-Bird

    How about adding a hybrid since the V6 is Toyota sourced.

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