Lotus Owes Suppliers Nearly $37 Million

A report in The Independent revealed that Lotus owes supplies nearly $37 million and has even asked for tax payment deferments to help manage its cash flow. The Independent paints a picture of parent company DRB-Hicom having to clean up the mess left by the former management team employed by Lotus. "DRB-Hicom, the owner of the Norfolk sports car maker, was not available for comment, but sources close to the company said many of the outstanding issues – including payments to suppliers – relate to the previous management. They added that in some cases DRB-Hicom is challenging some of the arrangements with suppliers over previous contracts where there are concerns over quality control. But they also repeated that DRB remains fully committed to the plant at Hethel, its workforce and turning Lotus around into a self-reliant and global brand." The Independent does cite internal financial statements view by the paper as confirming that Lotus does owe the $37 million. The report also listed revenues of $72 million, and overhead costs totaling nearly $56 million. Irrespective of the direction that Lotus is headed in product-wise, their financial situation is precarious at best. While everyone is out arguing over the heritage and authenticity of the brand, the flimsiness of their balance sheet appears to be something that everyone can agree on. from The Truth About Cars http://www.thetruthaboutcars.com

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