m100 Sean said:
And that is my problem... why?
I don't think many people estimated how hard it was for Lotus USA to come from being such a small importer of cars. to a much larger importer. Some of this I would venture is just that.
Some guesses.
First, Lotus Cars USA is operating on a very small budget. Not many employees, nothing like one might think. There is a business plan and expansion of course because of the new car, but that all costs money and a entity that generates less than 7 figures in profit can't be expected to do too much. You need the sales to pay for the expansion.
Now, Lotus USA will pay Lotus UK for all these cars that they have received. But agree that the dealer does not pay you until they get delivery. No problem, you do the business model and accept some "float" as the cars come in to USA and then get shipped out to dealers.
GO ahead with expansion plans and move into the new building. Hire a few people. This will be paid by the revenue from all those delivered cars.
Find out that because of shuffling in the build and a few other issues like LSS delays, cars are not coming in as you planned. One entire ship to the west coast is way behind what you planned. So in order to stifle the expected outcry from west coast dealers... you decide to delay some cars until roughly all cars could be here. But even then, the west coast is falling even farther back.
More cars accumulate in storage. Now you find that the "float" is strangling you. There was not a lot of margin in these cars (negotiated down when the dollar/pound changed and everyone agreed that holding the line at a sub $40k price was worth making less). But you are getting no margin. You have 50+ cars sitting in storage and you paid $2 million for them. Your line of credit is costing you money.
And then you find the company that processes and then transports the cars is charging you storage fees for the cars. They don't want to hold them. The port is not happy because they have only so much room for cars and this is not part of their schedule and they charge Lotus also.
Turns out... the west coast port is having more trouble. Ships are stacking up outside port and not being allowed to unload. Customs is taking a long time with some of your shipments.
Then you learn that the transporter company is not operating as one might hope. In order to maximize their return, they only want to go out when trucks are full. They are having trouble finding drivers too. Something about the gas costs. Lotus USA is not big enough to call the shots, so they rely upon a shipper that slots them in with other models. They move the cars based on their schedule. Lotus can give them windows when cars are to be moved, but in that 72 hour window, Lotus does not know exactly when the trucks leave or their route.
At the same time, with limited resources, you are trying to bring a new computer system online and there are some issues. It would speed things up if it was working, but it's not. And you spend a lot of your time putting out fires and answering questions. And in the end, the factory only builds so many and there is nothing you can do about it.
Just my 2 cents.
