Operations Review - ChartNexus

Operations Review
LOTUS
Against the backdrop of profitability in the previous
financial year, Lotus was confident of further
improving its performance in 2009 in line with its
Strategic Business Plan before the turn of events
in September 2008 which culminated in the global
financial and economic crisis.
Nevertheless, for the fiscal year ended 31 March 2009,
Lotus increased its turnover to £110m or RM574.8m
compared to £108m or RM564.3m in the year before.
This was underpinned by the diversity of the Lotus
business driven by the growth in third party high
technology engineering consultancy revenue, the
ability of the Cars Division to act swiftly to negate the
impact of the global downturn and the contribution
of Lotus Light Weight Structures.
As a net exporter of its products and services, a
weakening sterling at the time had benefited Lotus
and acted as a self-hedging mechanism for nonsterling
denominated costs. Conversely, however,
the volatile movement of the sterling against world
currencies also resulted in substantial unrealised
foreign exchange losses which together with
provisions for bad debts, pension protection levy
and asset impairment contributed adversely to the
net loss posted.
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Operations
During the course of the fiscal year, Lotus produced
2,202 vehicles compared to 2,649 units in the previous
year. This included the production of 388 Tesla allelectric
roadsters.
In order to improve sales, Lotus introduced new
derivatives to refresh its current model line-up which
include the Europa SE, Exige 260, 2-Eleven 190 as well
as the restyled 2010 model year Exige launched at the
March 2009 Geneva Motorshow. As a result, Lotus
saw better global market penetration compared to
its competitors in most territories.
In July 2008 Lotus’ first new model in 13 years, the
Evora, was unveiled at the British International
Motorshow to international acclaim. The world’s
first mid-engine 2+2 supercar had its formal press
launch in Scotland in May 2009 resulting in the
Evora dominating the global media headlines.
The Evora, which was launched in 2008, was Lotus’ first new model in
13 years.