Latest news with #LotusUK
The Sun
23-04-2025
- Automotive
- The Sun
Huge British car firm warns of ‘more cost cuts' days after axing hundreds of jobs over ‘volatile market'
A HUGE British car firm has warned it is being forced to make more cuts, after scrapping hundreds of jobs. Lotus has blamed the "volatility" caused by Donald Trump 's trade tariffs for the cuts. 3 3 3 The luxury sports car company announced the cuts despite the fact it has almost doubled sales over the last year. The motorcar firm recorded 12,134 sales in the 2024 financial year, a 74% increase on the 6970 sales made the previous year. However, Lotus made just £21.7m in gross profit, a significant decrease on the £76.3 million it made the previous year. Chief financial officer Daxue Wang blamed the decrease in profits on the impact of worldwide tariffs and "global trade uncertainties." He added that Lotus, which will become one company when the sports car division merges with the Chinese electric car division, will be forced to undergo "strategic cost optimisation to improve profitability." 'As we progress with the acquisition of Lotus UK, we are committed to driving cost streamlining and operational enhancements across all markets to continuously deliver long-term value,' Mr Wang said. The beginning of these cost-cutting measures was announced last month, when the manufacturer announced that it would be cutting 270 jobs. The brand promised it was "committed to the UK" despite the cuts, but this has done little to ease fears. A spokesperson said: "The proposed restructuring is vital to enhance our competitiveness in today's market. "Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars. Nissan Rogue Discontinued: America's Top-Selling SUV Faces Tariff Pressure "The company plans to increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group. "It will look at greater resource sharing and collaboration in technology, engineering, and operations." Days after the job cuts were announced, Lotus' current owner Geely International, triggered a 2023 agreement to force Lotus Technology Inc to buy back 51 per cent of Lotus Advanced Technologies. Currently Geely owns 51 per cent of Lotus, with the other 49 percent owned by Malaysian group Etika Automotive. Qingfeng Feng, Senior Vice President of Geely Holding Group and CEO of Group Lotus, said: "This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand. "It will strengthen brand equity and enhance our operational flexibility and internal synergies. "We are confident that the transaction will create substantial long-term value for our shareholders." Donald Trump 's introduction of 25 percent tariffs on car imports to the US has heaped huge pressure on car brands. The UK sends one sixth of all of the cars it builds each year to the US. These include luxe models from car brands such as Aston Martin, Rolls Royce and Land Rover. Sales to the US amount to about 100,000 a year, with a worth of around £8 billion. Trump has claimed that the import tax for cars, which came into play on April 2, would lead to "tremendous growth" for the industry. However, experts say it will likely lead to a temporary shutdown of significant production in the US and strain relations with other countries
Yahoo
17-04-2025
- Automotive
- Yahoo
Lotus Technology to acquire majority stake in Lotus UK
Geely-owned Lotus Technology has exercised its put option to acquire a 51% equity interest in Lotus Advance Technologies (Lotus UK). This strategic move follows the put option agreement signed by Geely and Lotus Technology in January 2023. The acquisition consolidates the manufacturing of Lotus' sportscars and hypercars, as well as Lotus Engineering's consultancy services, under the unified Lotus brand. The transaction is expected to be completed by 2025, pending regulatory approvals. It involves a non-cash agreement based on a pre-agreed pricing method, allowing Lotus Technology to gain control over Lotus UK and consolidate its financial results. Additionally, this acquisition aligns with the business combination between Lotus Technology and L Catterton Asia Acquisition, a special purpose acquisition company. The put option agreement, which includes both Geely and Etika, grants them the right to sell their equity interest in Lotus UK to Lotus Technology, contingent on Lotus UK and its subsidiaries selling over 5,000 vehicles in 2024. Lotus Technology chief executive officer Qingfeng Feng said: "This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand, which will strengthen brand equity and enhance our operational flexibility and internal synergies. We are confident that the transaction will create substantial long-term value for our shareholders.' Also, this month, Lotus Robotics, the intelligent driving arm of Lotus Technology, has signed a memorandum of understanding with HERE Technologies. This collaboration aims to develop an advanced Highway Navigation Pilot solution by producing an L2+ advanced driver assistance systems (ADAS) solution, powered by HERE HD Live Map, with plans for homologation in Europe in 2025. "Lotus Technology to acquire majority stake in Lotus UK" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Associated Press
16-04-2025
- Automotive
- Associated Press
Lotus Technology to Acquire 51% Equity Interest of Lotus Advance Technologies and Integrate All Business under Lotus Brand
NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Lotus Technology Inc. ('Lotus Tech' or the 'Company') (Nasdaq: LOT), a leading global intelligent and luxury mobility provider, today announced that Geely International (Hong Kong) Limited ('Geely') exercised its put option on April 14, 2025, requiring us to purchase 51% of the equity interests in Lotus Advance Technologies Sdn Bhd ('Lotus UK') held by Geely pursuant to the Put Option Agreement dated January 31, 2023 between the parties. Lotus UK controls the manufacturing operations for Lotus' sportscars and hyper cars, and Lotus Engineering which provides comprehensive consultancy services to many of the OEMs and Tier 1 suppliers around the world. Pursuant to the exercise of put option from Geely, the Company expects to acquire 51% of the equity interest in Lotus UK through a non-cash transaction based on a pre-agreed pricing method1. Upon completion, the Company will gain control over Lotus UK and consolidate its financial results. The strategic transaction will enable the Company to integrate all businesses under Lotus brand. The acquisition is expected to be completed by 2025, subject to potential regulatory approvals. In conjunction with the business combination between the Company and L Catterton Asia Acquisition Corp, a special purpose acquisition company affiliated with L Catterton, a leading global consumer-focused investment firm, the Company and Lotus UK entered into a Put Option Agreement with each of Geely and Etika. Pursuant to these agreements, each of Geely and Etika was granted the right to require the Company to acquire its equity interest in Lotus UK at a pre-agreed pricing method1 and upon satisfaction of the condition ('Put Option Exercise Condition') that the total number of vehicles sold by Lotus UK and its subsidiaries shall exceed 5,000 in 2024, with the exercise of such options by Geely and Etika not cross-conditioned on one another. As of December 31, 2024, the Put Option Exercise Condition had been satisfied. Mr. Qingfeng Feng, Chief Executive Officers, said: 'This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand, which will strengthen brand equity and enhance our operational flexibility and internal synergies. We are confident that the transaction will create substantial long-term value for our shareholders.' Note 1: Pursuant to the agreement, the Company will issue new shares valued at $10 per share in consideration of Geely and Etika's transfer of Lotus UK shares. Lotus UK is valued at 1.15 multiples revenue plus cash minus debt of LGIL, based on LGIL's audited consolidated annual financial report of 2024. About Lotus Technology Inc. Lotus Technology Inc. has operations across the UK, the EU and China. The Company is dedicated to delivering luxury lifestyle battery electric vehicles, with a focus on world-class R&D in next-generation automobility technologies such as electrification, digitalisation and more. For more information about Lotus Technology Inc., please visit Forward-Looking Statements This press release contains statements that may constitute 'forward-looking' statements pursuant to the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as 'may', 'should', 'expect', 'intend', 'will', 'estimate', 'anticipate', 'believe', 'predict', 'potential', 'forecast', 'plan', 'seek', 'future', 'propose' or 'continue', or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading 'Risk Factors' in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Tech undertakes no obligation to update any forward-looking statement, except as required under applicable law. Contact Information For investor inquiries [email protected]
