British carmaker will be first prestige brand to manufacture in largest automotive market
Lotus, the British sports car brand, will begin manufacturing in China within three years, according to its Chinese owner Geely, making it the first prestige brand to produce in the world’s largest car market. Geely is recruiting 20 engineers to join its billion-renminbi “Lotus Project” factory scheduled to be completed by 2021 in the central Chinese city of Wuhan, according to the Chinese company’s online recruitment page. Local authorities in Wuhan approved Geely’s Rmb9bn ($1.3bn) manufacturing plant in the city last month, official documents show. The factory will be able to make 150,000 vehicles per year, according to the documents, which were first reported by Reuters. China’s third-largest carmaker, Geely took a controlling stake in Lotus Cars’ business in 2017. The Chinese group also owns a suite of automotive businesses from Volvo Cars to Proton, and it acquired a 9.7 per cent stake in Mercedes-Benz owner Daimler a year ago. “Lotus Cars is undergoing an exciting resurgence with the backing of Geely, and expanding the brand’s manufacturing footprint globally is a key part of the company’s strategy,” said the company. Lotus lost £27.6m in the 12 months to March 31 2016, and its car sales fell by 242 to 1,584, according to accounts from before the Geely takeover. Chinese industry data show that 44 imported Lotus cars were registered in the country during the first 11 months of 2018, up from 29 in 2017. Production at the group’s British factory in Norfolk is likely to remain unaffected because the UK site will continue to manufacture the brand’s sport cars, with the new Chinese site expected to focus on sport utility vehicles. A spokesman said: “The home of Lotus sportscar manufacturing and engineering is the company’s Hethel headquarters in Norfolk, UK. Details on additional locations and models will be confirmed in due course.” “Lotus would be the first prestige sports car brand to localise in China,” said Yale Zhang, head of Chinese consultancy Auto Foresight.
Lotus, the British sports car brand, will begin manufacturing in China within three years, according to its Chinese owner Geely, making it the first prestige brand to produce in the world’s largest car market. Geely is recruiting 20 engineers to join its billion-renminbi “Lotus Project” factory scheduled to be completed by 2021 in the central Chinese city of Wuhan, according to the Chinese company’s online recruitment page. Local authorities in Wuhan approved Geely’s Rmb9bn ($1.3bn) manufacturing plant in the city last month, official documents show. The factory will be able to make 150,000 vehicles per year, according to the documents, which were first reported by Reuters. China’s third-largest carmaker, Geely took a controlling stake in Lotus Cars’ business in 2017. The Chinese group also owns a suite of automotive businesses from Volvo Cars to Proton, and it acquired a 9.7 per cent stake in Mercedes-Benz owner Daimler a year ago. “Lotus Cars is undergoing an exciting resurgence with the backing of Geely, and expanding the brand’s manufacturing footprint globally is a key part of the company’s strategy,” said the company. Lotus lost £27.6m in the 12 months to March 31 2016, and its car sales fell by 242 to 1,584, according to accounts from before the Geely takeover. Chinese industry data show that 44 imported Lotus cars were registered in the country during the first 11 months of 2018, up from 29 in 2017. Production at the group’s British factory in Norfolk is likely to remain unaffected because the UK site will continue to manufacture the brand’s sport cars, with the new Chinese site expected to focus on sport utility vehicles. A spokesman said: “The home of Lotus sportscar manufacturing and engineering is the company’s Hethel headquarters in Norfolk, UK. Details on additional locations and models will be confirmed in due course.” “Lotus would be the first prestige sports car brand to localise in China,” said Yale Zhang, head of Chinese consultancy Auto Foresight.
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