Geely to invest at least $1.9 billion to revive Luster sports car

Zhejiang Geely Holding Group is considering spending at least $1.9 billion to revive British luxury sports car brand Lotus, according to people familiar with the matter.

It was revealed that Geely plans to add a production base and research center for Lotus cars in the UK. Geely is in talks with its Malaysian partner Etika Automotive to increase its stake in Lotus.

Currently, Zhejiang Geely Holding Group holds 51% of Lotus, while Etika Automotive holds the remaining 49%. Geely hopes to revive Lotus and make it a leading global luxury brand.

Geely hopes to build Lotus into a luxury brand comparable to Porsche and Ferrari.

It was revealed that according to Geely's proposal: the first phase will be to expand Lotus' Hethel plant in the UK, which will employ 200 engineers. In the second phase, Geely plans to build a second plant in the West Midlands, UK, and may add a design and innovation center in Coventry.

Geely Holding Group Chairman Li Shufu hopes to lead Geely to the forefront of the automotive industry and compete with Toyota and Volkswagen Group.

In 2010, Geely Holding Group acquired Volvo and spent more than $11 billion to modernize its factories and help Volvo turn around its then-trend.

In February this year, Li Shufu became the largest shareholder of German luxury car maker Daimler, holding nearly 10% of the latter's shares.

In 1996, Proton acquired 80% of Lotus Cars for 51 million pounds and achieved 100% control of Lotus Cars in 2003.

Lotus has been struggling to develop. From January to July this year, Lotus sold only 145 cars in its home market of the UK, a year-on-year decline of 25%.

Last year, Geely acquired a 49.9% stake in Proton Holdings, a subsidiary of Malaysia's DRB-Hicom Group. Proton Holdings divested 100% of Lotus and sold 51% of its shares to Geely for 51 million pounds (about 450 million yuan); the remaining 49% of the shares were sold to another Malaysian company, Etika Automotive.

After completing the acquisition, Li Shufu said the top priority was to make Proton and Lotus profitable and maintain growth, while keeping up with new technology trends in electrification and artificial intelligence.

Li Shufu also said that he would consider producing Lotus sports cars in China.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.