Lotus misses out on UK funding to expand manufacturing facility

Lotus Esprit
Lotus Esprit

Remember those six supercar concepts that Lotus was flaunting around at auto shows last year? Well, it seems like production on those models may have to be delayed a little. Lotus has missed out on a £27.5 million ($39.6 million) loan from the government that it would have used to fund an expansion to its Hethel manufacturing facility.

With the failure to secure the funds Lotus could see a delay in the production of its new models, including the 2013 Lotus Esprit.

Click here for more details on Lotus’ Concept lineup.

Lotus had planned to use the loan to “expand and maintain its production at its Hethel site, creating 1,200 new and sustainable, high-value jobs and safeguarding the existing 1,200 jobs.”

“Despite the clear synergies between Lotus’s growth plans and the fund’s objectives to enable private sector organisations to invest in projects that would create jobs and secure long-term growth, the bid team decided that the money was better invested elsewhere,” said Lotus. “Following this decision Group Lotus is currently exploring all available options, including the possibility of submitting an updated bid for round two of the funding, which is set to close on July 1.”

Other automakers including General Motors, Nissan, Jaguar/Land Rover and Bentley were successful in their applications to the Regional Growth Fund.

– By: Omar Rana

Source: AutoCar