Lotus growth funding: Government announces £10m offer

Lotus Exige on display at 2012 Geneva motor show Lotus was promised £10.4m of government funding in October 2011

Related Stories

A £10m government growth grant has been offered to Lotus Cars, which employs more than 1,000 people in Norfolk.

In October 2011, Lotus was offered £10.4m of government funding but it was put on hold during takeover talks.

The firm had announced plans to create 1,000 jobs as part of a five-year expansion plan but these were shelved.

The Department for Business said a new offer was under discussion. Lotus declined to comment other than to confirm it had been made.

Proton, the owner of Lotus Cars, was acquired by Malaysia's DRB-Hicom in January 2012.

DRB-Hicom was later involved in a dispute with chief executive Dany Bahar who had announced that new ranges of cars were to be launched.

Mr Bahar was suspended and then dismissed and has since started a £6.7m legal claim on the company for unfair dismissal.

At a regional growth fund event on Monday Business Secretary Vince Cable announced that a new offer to Lotus had been agreed in principle subject to negotiations and due diligence tests.

He expected an announcement from Lotus in the next few weeks.

Lotus said the offer had been made and it was considering it but a decision and any announcement would not be made until the summer.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC Norfolk

Weather

Norwich

5 °C 0 °C

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.