A large headache now seemingly resolved...
DRB-Hicom, ex-group Lotus CEO Bahar resolve legal dispute - Business News | The Star Online
DRB-Hicom, ex-group Lotus CEO Bahar resolve legal dispute - Business News | The Star Online
Bahar lawsuit settled, claims withdrawn.
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4,778 Posts
"No major impact on financials" sounds like they paid Bahar a good sum of money
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676 Posts
Not sure why he would be called a weasel. I think bahars direction is the only way to stay competitve. Rules and regulations are killing the lotus mantra so lotus needs to point to another direction
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1,150 Posts
You must've missed everything. Wasting all the cash flow on pie-in-the-sky pipe dreams that results in no new product, a confused media, and skeptical customers is not "staying competitive".
He's a weasel and an idiot and the world is a better place without him.
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3,006 Posts
You bet.
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2,600 Posts
I didn't mind bahars direction. It just needed to be done in moderation.
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7,610 Posts
The legal issue isn't some much the direction he was taking the company (ie: the Paris 5) but the gross misuse of company funds. That's what makes him a weasel.
Former Lotus CEO Danny Bahar Sued for $4 Million
re: Weasel or another mislead exec
I think, there are some far reaching assumptions about what the man did or did not do.
Who knows (other than the parties involved) about what was promised by both parties to each other?
Do you think that the man is a complete idiot (I use the clinical term i.e. IQ<70) and did not discuss the direction he wanted to pursue when he was hired? Do you think that the person that was hiring him was a bigger idiot not to ask??
Do you think, just like any high-flying executive, he was not promised lavish relocation expenses and benefits? especially in Britain where marginal tax rate is 98%? so the only way to get value for your work is some kind of nontaxable benefit?
Whoever takes the legal case for its face value is a fool (idiot?)! or does not understand larger business, taxation and legal issues. Lotus needed to sue him to put themselves in a position to negotiate a settlement, send the tax authorities after him, since the benefit would become taxable, if not legally obtained, etc...
As for the strategy... It was a sound strategy, if one was promised financial backing and given the direction to become a major sports car manufacturer and not a kit car builder. Was it sound or not... we will never know for sure. It is clear, however, that to execute, it would have required a significant injection of capital.
Anton
I think, there are some far reaching assumptions about what the man did or did not do.
Who knows (other than the parties involved) about what was promised by both parties to each other?
Do you think that the man is a complete idiot (I use the clinical term i.e. IQ<70) and did not discuss the direction he wanted to pursue when he was hired? Do you think that the person that was hiring him was a bigger idiot not to ask??
Do you think, just like any high-flying executive, he was not promised lavish relocation expenses and benefits? especially in Britain where marginal tax rate is 98%? so the only way to get value for your work is some kind of nontaxable benefit?
Whoever takes the legal case for its face value is a fool (idiot?)! or does not understand larger business, taxation and legal issues. Lotus needed to sue him to put themselves in a position to negotiate a settlement, send the tax authorities after him, since the benefit would become taxable, if not legally obtained, etc...
As for the strategy... It was a sound strategy, if one was promised financial backing and given the direction to become a major sports car manufacturer and not a kit car builder. Was it sound or not... we will never know for sure. It is clear, however, that to execute, it would have required a significant injection of capital.
Anton
No he did not. Or, at the very least, we do not know. These were counter claims, alleged offenses, and obviously, not proven. Settling is not an admission on guilt, on either side. It is a desire by both parties to avoid litigation, and possibly an acknowledgement that they do not believe their case is winnable; probably both here. It may well be that it was Dany who wanted to avoid it; it may well be that it was Lotus that wanted to avoid it. If the agreement is unsealed, or leaked, we may know, or it may never be clear or known. One thing for sure, neither side wanted this to go on.
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3,562 Posts
Taking this a different direction, I would say his IDEA that heavier cars that deliver the luxury and performance a discriminating buy would want is the future. Look at 918, P1, or Laferrari for definitive proof. Not to say that the company shouldn't have an Elise/Exige in the lineup which is the light and pure driving experience that should always be a part of Lotus, but rather a better executed Evora-type vehicle is the future rather than another 2000 lb car. They really should become the british Porsche and follow their business model.
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1,150 Posts
If Proton didn't make Bahar buy into his plan as a financially vested CEO, then they're just as stupid as he was for overreaching Lotus' very modest budget. I'm not aware of the financial circumstances of his hiring. Anyone know?
No, I don't think he's a clinical idiot, per se. His dreams were simply too big and too quick for Lotus to handle. Perhaps developing just the Esprit would've been a more rational decision. It certainly doesn't take a genius to see that developing 5 new cars in a company that's struggled to build more than 1 model at a time seemed out of cadence. So while Bahar may have had some good ideas, it seems he forgot to look at the glaringly obvious big picture.
I would love to see Lotus maintain their niche while having something an average enthusiast can rationalize buying. The Elise/Exige are just too hardcore for typical WRX/Miata/GTI/etc. enthusiasts, which is already a fairly hardcore group compared to the average Camry/Accord/Civic buyer. I can picture Lotus maintaining being the lightest of their sports car peers, like perhaps a modern day Elan that's S2000 sized, and then a new Esprit that could at least on paper compete with the Audi R8 or Gallardo while maintaining the "lightest in class" badge of honor, something like that.
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29,081 Posts
I know enough of what he said and did, some of which I heard in person. This does not excuse the people at Proton for sure. But how good or bad the ownership of Proton/DRB is, is not the point of the thread.
He brought in Swizz Beatz and assigned him "Head of Global Design." Swizz went on to make some very stupid comments showing he had no idea about the cars or Lotus. He also invented chrome paint. There was a lot of funds directed to Swizz with helicopter rides, videos, and donated cars. Perhaps the idea was to buy some street cred, but in my mind this was all missing the market by a mile.
He did the 5 car roll out in Paris. There was no way this would have worked with the funding they had arranged with the Malaysian banks. Even before it all went pear shaped, Lotus was missing the milestones. Which I think it more why he was removed. He could not do what he said he could do.
He declared the weight did not really matter. Does not matter if it does or not. Not the smartest thing to say.
The PR department under his watch did a number of dumb things.
He hired on B level celebs to promote the brand. Again an expenditure of funds that could have been used for other purposes and in my opinion, missed the mark and was wasted. Nobody cares about the Baldwins.
At the LA Auto Show unveiling, in his introduction for Sharon Stone, he made a very awkward statement about her age.
The branding of the next generation Elise was urban and hip-hop. Sort of urban chic. Which misses the market again. In his attempt to be hip, he wanted rap artists involved and used graffiti as a branding mark. The market is performance guys...who get light weight and that was ignored. Style over substance.
He was involved in the new magazine and the store in London, which seemed to me to be too much a reach and priced beyond what the existing market was.
He cancelled the work on the existing Esprit that was started before his time. Even though the news coming out that Lotus had made some good progress under Kimberly.
He made a public statement about the Toyota engines... which again.. think what you want...but why say anything? No reason to piss off one of your major suppliers. But he was hell bent on making his own engines.
Under his watch, the company became part of many branding exercises that in end became more a black mark on the brand..such as Indy Car. The one positive was probably Enstone F1 branding as Lotus, since the money promised to Enstone was never paid and they still reap the benefits of extra tv time when Maldonado crashes.
He made a public statement about how he was not a fan of the Evora. Being a fan was not the point, he should not have said that.
In the end, he was mostly out of touch with the existing fan base and for a niche company that is eeking out an existence, that is not a good thing. An attempt to expand to a new market is a good thing, but most companies understand you do not insult your old market before you have the new one developed.
On the positive, he had good hair. He was charismatic and that is good in a figure head and leader. He hired some good people. He had vision. All good things.
But when weighing the positives and negatives of the Bahar legacy, he could best be known for the guy who put Lotus in a very dark position that they continue to struggle with, and one only hopes they can come back from. Over $200m in debt is a tough nut to take on.
I never drank the Dany kool aid. He was the wrong person for Lotus.
He brought in Swizz Beatz and assigned him "Head of Global Design." Swizz went on to make some very stupid comments showing he had no idea about the cars or Lotus. He also invented chrome paint. There was a lot of funds directed to Swizz with helicopter rides, videos, and donated cars. Perhaps the idea was to buy some street cred, but in my mind this was all missing the market by a mile.
He did the 5 car roll out in Paris. There was no way this would have worked with the funding they had arranged with the Malaysian banks. Even before it all went pear shaped, Lotus was missing the milestones. Which I think it more why he was removed. He could not do what he said he could do.
He declared the weight did not really matter. Does not matter if it does or not. Not the smartest thing to say.
The PR department under his watch did a number of dumb things.
He hired on B level celebs to promote the brand. Again an expenditure of funds that could have been used for other purposes and in my opinion, missed the mark and was wasted. Nobody cares about the Baldwins.
At the LA Auto Show unveiling, in his introduction for Sharon Stone, he made a very awkward statement about her age.
The branding of the next generation Elise was urban and hip-hop. Sort of urban chic. Which misses the market again. In his attempt to be hip, he wanted rap artists involved and used graffiti as a branding mark. The market is performance guys...who get light weight and that was ignored. Style over substance.
He was involved in the new magazine and the store in London, which seemed to me to be too much a reach and priced beyond what the existing market was.
He cancelled the work on the existing Esprit that was started before his time. Even though the news coming out that Lotus had made some good progress under Kimberly.
He made a public statement about the Toyota engines... which again.. think what you want...but why say anything? No reason to piss off one of your major suppliers. But he was hell bent on making his own engines.
Under his watch, the company became part of many branding exercises that in end became more a black mark on the brand..such as Indy Car. The one positive was probably Enstone F1 branding as Lotus, since the money promised to Enstone was never paid and they still reap the benefits of extra tv time when Maldonado crashes.
He made a public statement about how he was not a fan of the Evora. Being a fan was not the point, he should not have said that.
In the end, he was mostly out of touch with the existing fan base and for a niche company that is eeking out an existence, that is not a good thing. An attempt to expand to a new market is a good thing, but most companies understand you do not insult your old market before you have the new one developed.
On the positive, he had good hair. He was charismatic and that is good in a figure head and leader. He hired some good people. He had vision. All good things.
But when weighing the positives and negatives of the Bahar legacy, he could best be known for the guy who put Lotus in a very dark position that they continue to struggle with, and one only hopes they can come back from. Over $200m in debt is a tough nut to take on.
I never drank the Dany kool aid. He was the wrong person for Lotus.
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3,006 Posts
I strongly disagree. Competing with Porsche on their terms is pointless. Why try to be Porsche? We already have Porsche.
Be Lotus. Go where the others do not go. Consistently build cars that are lighter than other supercars.
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6,820 Posts
No matter how excellent or terrible his "strategy" was, the bottom line is that he didn't successfully execute it. For that he deserved to be fired.
Further, he drained the company's bank accounts for unauthorized expenses including personal items. For that he deserved to be sued and prosecuted.
Further, he drained the company's bank accounts for unauthorized expenses including personal items. For that he deserved to be sued and prosecuted.
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424 Posts
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7,610 Posts
Don't applaud to loudly. It's a hair piece.
Sounds like his target market for the new Lotus cars was the Scion market. Yeah, like they can spend $60K+ on a sports car.
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