Lotus will lose nearly RM900 million in the second quarter of 2024, and will lay off 200 people at its UK factory – automachi.com

Lotus will lose nearly RM900 million in the second quarter of 2024 and will lay off 200 people at its UK factory

Despite a 134% sales surge in the past nine months, the British classic sports car brand Lotus still suffered a net loss of US$202 million (approximately RM900 million) in the second quarter of 2024. As demand for high-end electric vehicles slows, Lotus is taking a series of difficult measures to restore stability, starting with major layoffs and plans to cut as many as 200 jobs in the UK.

According to a report by Auto Express, Lotus’ layoff plan is part of the company’s restructuring to establish “an organizational structure that ensures sustainable operations.” Despite the launch of new models such as the electric SUV Eletre and luxury sedan Emeya, and the sports car Emira also achieving good sales in the U.S. market, Lotus still faces a cooling of the high-end electric vehicle market. Many luxury brand consumers are gradually losing enthusiasm for high-end electric vehicles, and some are even turning to the familiar roar of traditional internal combustion engines.

Earlier this year, Lotus made a dramatic move by slashing its production forecast by more than 50%, from an original plan of 26,000 vehicles to just 12,000. This adjustment is precisely to respond to changes in market demand and avoid the problem of overproduction. This reduction in production capacity is due to a “tightening strategy” in the hope of reducing unnecessary inventory pressure by controlling production and at the same time being more in line with actual market demand.

Lotus confirmed that it will cut costs by laying off 200 employees. This move is also a means for the company to improve operational efficiency and ensure survival in a volatile market. Lotus parent Geely is backing its restructuring efforts, hoping to cope with fluctuations in the luxury electric vehicle market through cost optimization and organizational streamlining.

Despite the current financial difficulties, Lotus remains confident in its electric transformation and is expected to continue to launch innovative high-end models in the future to meet changing market needs. The company will focus on improving operational efficiency, adapting to the challenges of the electric vehicle market, and striving to gain a foothold in the high-end electric vehicle market

Source:Auto drive

Picture translation:Netcarshow

Author: Ivan Choy Ewi Liang

I like cars, but I don’t like racing games