Chinese billionaire poised to rescue Great British icon — Lotus

By Jamie Lincoln Kitman

In its heyday, Lotus was revered for lightweight racers favoured by James Bond and Mario Andretti. The company’s engineering talent alone was so well respected it developed a successful consulting firm with clients that included General Motors, Aston Martin, and Tesla. But consumer tastes changed.

When sports cars gave way to SUVs, Lotus suffered. In a sign of how bleak things had gotten, Lotus’s British network of dealers sold an average of just 11 cars per month in 2012. Now there are signs that things are turning around. Lotus is about to be rescued by the same Chinese billionaire who bought Volvo Cars, just in time to help it maneuver the challenge of trading after Brexit. A controlling stake in the company—51%—has been sold for £51 million ($65 million) to Li Shufu’s Zhejiang Geely Holding Group, giving Lotus a deep-pocketed parent.

“This is fantastic, the best thing that could have happened to us,” said CEO Jean Marc Gales, who joined Lotus in 2014. The deal, announced in June, is expected to close this month.

Volvo has been thriving under Geely, which appears to operate on the seemingly revolutionary principle that the parent company provides cash while the existing engineering and design teams get on with what they do best.

After the Volvo deal, Geely in 2013 purchased London Taxi International , which makes London’s distinctive black cabs in the English Midlands. The company plans to release an electric version this fall.

Lotus could be next on the list, providing essential engineering skills as Geely ramps up production at home and abroad. Under such a benign owner, quirky Lotus could thrive.