Lotus ‘too big’ AND ‘too small’ for UK government aid
Lotus has been denied a share of the £2.3 billion UK government funds set aside for the UK auto industry. The funds are intended to revitalize an industry that’s been simply devastated by the global economic downturn. In December 2008, vehicle production in the UK fell to its lowest level in 20 years – a number roughly half of production just a year before.
Lotus CEO Mike Kimberley explains, “We need to be investing in new technologies and green technologies now to get ahead of the pack. We need some help on the funding to do it. Other countries are providing that help. We were told there were European funds [from the European Investment Bank] to help us invest. But the answer came back within four says that we were too small. So we spoke to the old DTI, the Department for Business, Enterprise and Regulatory Reform. We were told that unfortunately we were too big. They only fund small companies up to 30 people. We have an immense degree of frustration. The net result was all talk, no reality."
Despite the denial of funds, Kimberley added that Lotus did not absolutely need a bail-out and still has plans to hire more engineers.
source: EDP24 -Lotus too big AND too small for cash aid