Daewoo Shelves Lotus Takeover Plan; Proton Takes Over

1 November 1996

On Wednesday, 30 October, Malaysian automaker Proton has agreed to pay about 51 million British pounds (US$83 million) for an 80 percent stake in British sports car maker Group Lotus Ltd. Its owner, Italian entrepreneur Romano Artioli, has been seeking a new partner to invest in Lotus for most of this year.

Daewoo Motor Company Ltd. of South Korea has cancelled plans to buy the major stake in Lotus. Spokesman Lee Chang-Won told reporers that Daewoo ``[had] not talked to Lotus for several months'' concerning any acquisition, and that ``our previous negotiations could not narrow differences.''

Proton maintains that the change in ownership will not affect the way Lotus is managed. Yahaya Ahmad, chairman of Proton's parent company, reports that this would allow Lotus to boost production of its Elise sports car in England and to add production capacity to Proton plants in Malaysia.

Industry analysts in Malaysia report that Proton will finally get the advanced engine technology it has long sought, and that the deal can bring Proton into the luxury sports car sector.

The Auto Channel