Why Lotus CEO expects record-breaking results from 3 new models

Lotus CEO Jean-Marc Gales is feeling optimistic. China's fast-expanding Zhejiang Geely Holding took a majority stake in Lotus last year and recently committed to its first big investment in the British sports-car maker. This will allow Lotus to add staff, new models and upgrade its production facilities in Norwich, England. During his four years as CEO, Gales has steadied the company's finances. Now his challenge is making Lotus's first SUV a winner without damaging its reputation as a maker of lightweight, agile sports cars. Gales spoke to Automotive News Europe Correspondent Nick Gibbs.

Lotus has been part of Zhejiang Geely Holding for more than six months now. What changes are taking place?

We will hire 300 new staff this year. Last December we were at 806, the lowest for a long, long time, so we will go to 1,100, almost a 40 percent increase.

Are the majority of the new hires going to work in vehicle development?

Most are. Geely has approved two new sports cars. We will tell you what they are in five months, but both will come in 2020. Our last new car [the Evora] was in 2009 so it's time for a new one.

Will these be flagship models or entry-level sports cars?

I can't be more precise, but both will be a benchmark in the segment in terms of handling, aerodynamics and lightweight.

And the SUV?

We have started to work on the new SUV.

When will it arrive?

In about four years. The SUV has to be the right car. We get one shot. We still need to sign off final design. That's the most important part. We can't use the same design language as a sports car, but you should also be able to recognize that it is a Lotus.

Will it use a platform from a Zhejiang Geely brand, maybe from Volvo?

Let's call them modules. Platform suggests something big and heavy and it's not like that. We are going to heavily use a mix of new and proven Geely family modules and combine them to create an aesthetically beautiful performance crossover.

What size is the SUV?

The Porsche Macan and Cayenne are the most interesting segments worldwide, so midsize and large. I wouldn't start Lotus in a compact segment.

What are your annual sales targets?

Above 3,000 a year is still our aim. Maybe in 2021-2022 with the two sports cars we can do that. Last year we sold 1,600, up from 1,416 the year before. We'll be at five digits [more than 10,000 units a year] with the SUV.

Will the SUV transform Lotus?

The company is growing fast. Revenue was up 24 percent to more than 100 million pounds (114 million euros) last year. We can double that, then as soon as you launch an SUV, you're thinking of a turnover close to 1 billion pounds. That's the sort of size we want – and we won't stop there. That’s why the SUV is so fundamental.

Where will you build the SUV? China?

We haven't decided, but given China is the world's biggest market it makes the most sense.

Can you get the OK to build in China?

We'll find a way. It's highly probable. The important thing is that the sports cars stay in the UK. For the SUVs I can imagine two places [for production] worldwide and I would love one to be in the UK, but there are things to discuss.

Like what?

I want to know what happens after Brexit. It casts a shadow over everything because it makes long-term planning difficult.

The entry Elise starts at 30,000 pounds. Does Lotus always need a budget sports car?

Over the last four to five years there haven't been many newcomers in sports cars. There seem to be two areas in the world where manufacturers need to get into bed together, one is vans, and one is sports cars. Sales volumes are notoriously low, investment is notoriously high, so you need to invest wisely. It's not easy.