My Lotus Cars turnaround plan ( Fee Free!!!)

General General Lotus Talk
1

My proposal for any new shareholders in Lotus Cars


Hack out all the expensive senior management , so in simple terms , if your last job was with Porche, or Ferrari , your gone…

Recruit a new CEO from within the senior Management of JLR or Renault (or similar)

The Board must recruit one or two ’ business angels’ to the operating Board with turn around experience / showing past positive results.

Have a ’ Special Development Team’ with the company , either recruit new people or redeploy existing ’ bright innovative ’ people. This team do NOTHING else but development . And they do this within a STRICTY CONTROLLED -& to an agreed BUDGET.

Recruit some young designers from Coventry University College of Design. Even try some on ’ work experience’ like other manufacturer’s �have done , pick the best of that bunch.

Reduce factory labour force.

Produce Departmental budgets reflecting reduced turnover . Enforce those budgets stringently.

Mothball / reduce the production lines

ONLY launch ONE new car every 2 or 3 years , and concentrate on getting that ONE car right before launch.

Base ALL models on a maximum of TWO chassis’ for the whole existing and future range.

Base ALL models on a maximum of TWO engines �for the whole existing and future range, and then just adjust the state of tune of those engines by model.

Reduce the company’s gearing/borrowing , SELL unused buildings & RACE TRACK �( Lotus can hire it , when needed) �and rent out those buildings that may be used in the future, IF there is sufficient growth.

Install management ‘think’ that is ROI . ( Return on Investment)

The management must think ‘small’ till the business is consolidated on a sound financial footing .

.

CONSOLIDATE the business , chase profit , NOT turnover, which probably means �cutting back turnover by at least a third and overhead by a similar amount or more.


Budget Should be achieve the targets below as a minimum:

Return on Capital of 22%

Stock turnover ratio Circa 22%
Return on Net Assets 25%

Return on Total Assets 10%

Debt ratio of 1.2 %

PRE TAX MARGIN ���6% +



[color:#CC0000]CONSOLIDATE!![/color]!!! **** :slight_smile:

2

That’ll never catch on, you seem to be talking sense! :astonished:

3

Are you that spotty little Russian oik that killed TVR

:crazy:











:smiley:

4

[quote=tim_marra]Are you that spotty little Russian oik that killed TVR

:crazy:[/quote]

No! I’m not! :slight_smile:

5

Podger , the shrooms are wearing off I feel …
You are talking far too much sense …
Best go pick some more :wink:

6

Podger … I think you missed a rather important peice of the puzzle - market.

What/who is your target market ? and what do they expect from a LOTUS vehicle etc etc

Its great having a super LEAN company but you still have to shift product at the right price … the market in UK aint gonna save LOTUS no matter what you cut it down to.

7

Hey what’s wrong with managers?! We’re (sorry, they’re) essential!!! :slight_smile:

More seriously, particularly essential when operating to budgets is concerned. Give engineers a cheque book, shudder.

Ian :s

8

JFK , I can’t get anymore mushrooms here , pity !!! :wink:


Andy D , The market target �( niche ) remains similar, but the product doesn’t try to be a poor mans Porsche or Ferrari. As ever it’s world market. I need to say I’d close that colossus of a marketing & PR Department , and sub’ all that activity to agencies , that can be switched on/ off as required. In my own experience they do a better job , than in house people. :smiley:

IDG , I said that the Special Projects/ Development team had a budget that would be tightly controlled , and monitored. No engineers with cheque books in my model!!� :wink:

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Thanks , it will one day , I hope !! :smiley:

10

This should be in the muppet section…

11

Interesting to read on Pistonheads about Lambo under Audi and how they see the way to guaranteeing a future as going in the opposite direction:

"While Lamborghini has done better under Audi than any previous owner there was clear pressure to expand the product line-up to three models, the current two-car range apparently not enough to guarantee medium or long-term stability.

“We looked at a smaller Gallardo, a 2+2, a sedan and an SUV,” says Winkelmann. “To support a third model the segment has to be big enough, has to be worldwide, has to support a high-end price and it has to fit with the brand.”

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Audi builds the Lamborghini now. They purchased it from almost it going out of business, for a very small amount around 5-10 years ago. Something in the range of less than 50 million, which is cheap.

They than redesigned the whole vehicle line-up. Out with the Countach and Diablo, and in with the Murcielago and Gallardo. They use a the same drivetrain as the Audi R8.

Ever since Audi took over, the quality and build really made Lamborghini a “drivers” car. Comfort et al

The engine used in the Galllardo is a similar engine block to the Audi S8. I believe with the displacement on the Lambo actually being a bit smaller.

So it’s all about rationilastion , from acorns…

Lotus is NOT in the same league as Ferrari, Porsche, Lamborghini , different customer base , different financial footing, and importantly the aforementioned all make PROFIT , and still make cars , not just produce hot air.Like…

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[quote=stevegreen]

“We looked at a smaller Gallardo, a 2+2, a sedan and an SUV,” says Winkelmann. [/quote]

When did she move on from “Strictly Come Dancing”?

14

They’re aiming to be though, particularly in the Far East, where today’s/future real money is (sadly!).

15

Ignoring the typo :whistle:

You must have spent too much time in your Morgan…

Couldn’t disagree more - nice to have some of them but not really the 1st criteria i would put on a list of what makes a driver’s car.

Let’s give the guy who has the job a bit of time and support to see what he can make of it instead of the lazy option of wielding an axe and just cutting everything.

16

[quote=Mr Pesky][quote=Podger]

Lotus is NOT in the same league as Ferrari, Porsche, Lamborghini , different customer base
[/quote]

They’re aiming to be though, particularly in the Far East, where today’s/future real money is (sadly!). [/quote]

This is is probably true, & I do know that a lot of S1 Elise’ are being shipped to Japan, :frowning: but it’s cyclical 2 years ago it was Europe :wink: I don’t think ‘new’ Lotus has the same quodos. :smiley: in the Far East…one day maybe!

17

[quote=tim_marra]Are you that spotty little Russian oik that killed TVR

:crazy:

[/quote]


Yup, that’s a sad story about big toys for a small but rich boy.

18

Intersting translation - but got the gist of it!

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[quote=Podger],instead of the lazy option of wielding an axe and just cutting everything.

Having had considerable experience in successfull turnarounds , wielding an axe is NEVER easy , & is NEVER EVER a lazy option, but then I have had some experience…






[/quote]

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As a direct comparison from where the figures need to be , in a viable company

Lotus figures are on the right below ( red indicating loss!!!)

Return on Capital of 22%. [color:#FF0000] -[/color]28%

Stock turnover ratio Circa 22%. 24%

Return on Net Assets 25%. [color:#FF0000] -[/color]11%

Return on Total Assets 10%. -[color:#CC0000]85.2%[/color]

Debt ratio of 1.2 %. 6.8%

PRE TAX MARGIN ���6% +. [color:#FF0000] -17[/color].4%




Pretty poor investment , unless it’s purchased as a basket case with no debts , in addition there has been an increase in Salaries & Wages of �1.3 m ( Directors emoluments are hidden!!)

or… Buy it For a �1.00 :wink: