Lotus could see its production being moved to China after the company’s acquisition by Geely, which also owns Volvo.
Geely agreed to purchase 49.9 percent of Proton and 51 percent of Lotus from Malaysian DRB-Hicom, with the transaction expected to be completed in three months.
Geely’s boss Li Shufu said to Bloomberg that their priority is to make Proton and Lotus profitable again, as well as introduce them to the latest technology trends, such as electrification.
Despite Lotus having posted a profit for the first time in 20 years this year, its fluctuating sales and the lower production cost in China are the biggest reasons for a potential production move.
After all, Geely has already moved production of the Volvo S90 to China as of late last year. Lotus is expected to keep its HQ in the UK, just like Volvo remained in Gothenburg, Sweden.
Lotus’ plans to expand its range of models are known to include an SUV for quite some time now and now that Geely enters the picture, we could see it finally becoming a reality.
PHOTO GALLERY
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