The Chinese automotive group – also owner of Volvo Cars and Britain’s LEVC – has wrapped up another high-profile acquisition, the $65 million transaction that includes a commanding stake in famous British sports car company Lotus.
Geely is now the owner of a 51-percent stake, while Malaysia’s Etika Automotive keeps the remaining 49 percent. Lotus’ board of directors will look completely different from now – Geely Chief Financial Officer Daniel Donghui Li has been named chairman of the British firm, with two other Geely managers also occupying seats on the five-member board. Jean-Marc Gales has been kept as Lotus’ chief executive officer, seemingly to keep up the good work – “We are producing the best cars in the company’s history and are currently developing next generation of sports luxury vehicles,” he commented recently during an interview with Autocar Professional.
Geely has completed the purchase through negotiations with DRB-Hicom, who offered its controlling stake in Lotus for $65 million, and also gave up the 49.9-percent stake it had in Malaysian automaker Proton. Specialists believe the same procedure that was successful with Volvo will be retained – autonomy at its best, with cash coming from the parent company, and in exchange the latter will be free to secure any innovations for its own interest.