Lotus CEO says recovery strategy already in place image

British sports car maker Lotus has been struggling lately, with announcements it would move to cut as much as a quarter of its workforce. Jean-Marc Gales, who took over as CEO in May, says the plan to return to profit is already in place.

The company had been without a chief executive officer since Dany Bahar was ousted back in 2012 – a situation that mirrors fellow luxury rival Aston Martin, which only recently filled its own CEO post with Nissan executive Andy Palmer. The move to slash 325 posts from its 1,215 global workforce is just one element of the strategy set up by the new boss to return the carmaker to positive results.

The ailing British sports carmaker had losses of 159 million pounds (203 million euros) in its fiscal year ended March 31, 2013 – up from 115 million pounds in fiscal 2012. Just like Aston Martin, Lotus lacks the backing of a huge global automaker – it’s owned by a Malaysian company.

Gales has been sourced as well from a competitive mass-market player, leaving his post as the No. 2 executive at PSA Peugeot-Citroen to embark on an adventurous journey with a small manufacturer. He says that his primary goal is to add dealerships to expand the coverage offered by the sales network, he also developed a new marketing program, restructured the entire company and allowed power management to make more critical choices.

Via Automotive News Europe