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Here's the official.

Chris
>>>>>>>>>>>>>>>.

LOTUS CARS USA ANNOUNCES NEW ELISE PRICING





DULUTH, GA (September 1, 2004) – Lotus Cars USA, importer and distributor of British made Lotus sports cars, announced a change in the MSRP of its new Elise two-seat roadster today, citing adjustments for exchange rates. Effective September 1, 2004, the MSRP for a base 2005 Lotus Elise is $40,930, up $945 (2.3%) from $39,985. Option package costs and delivery charges will remain unchanged.



“The Elise continues to offer a superior value due to its outstanding performance and limited production volume,” said Lotus Cars USA CEO John English. “We are reluctant to increase prices from the introductory levels, however a challenging exchange rate environment requires Lotus to make an adjustment at this time.” English noted that the price increase is substantially less than the actual devaluation of the U.S. Dollar against the British Pound since the debut of the U.S. market Elise.



About Lotus Cars USA

Lotus is one of the world’s best-known British performance brands with a reputation for innovation and success through a steady stream of winning racing cars and memorable sports cars. The first Lotus car was built in 1948 by founder Colin Chapman (1928-1982). The Lotus Engineering Company has pioneered automotive systems and components still in use today.



Lotus Cars and its sister company Lotus Engineering are owned by Group Lotus, PLC, headquartered in Norfolk, England. The location is home to design, manufacturing, research and development and sales facilities. While Lotus Cars continues to design and build sports cars revered for their performance, style and innovation, Lotus Engineering develops advanced automotive systems and components for many of the world’s leading automakers. Together, these two enterprises are a powerful team, committed to changing the rules that define automotive excellence.



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I believe that the Elise debuted in the US market when Chris' car was delivered on July 15th. I don't believe that the dollar-pound ratio has shifted 2.3% in that period of time. I suppose that Mr. English has a different perception of debut.
 

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...citing adjustments for exchange rates.
weren't people crying in one of the new threads that it had nothing to do with this even though the rates were the same back in January?

And does this mean that when the dollar gets stronger that the price will drop? HELL NO. One way street baby.

Option package costs and delivery charges will remain unchanged.
no...please increase these 2.3% or whatever the hell it was, too! :rolleyes:
 

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Actually, the exchange rate on January 1, 2004 was .56010 USD to GBP and today it's 0.5549. That's less than a 1% change.
 

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It's nice to see an official press release from Lotus about this, at least! The flow of information is improving, if every so slightly. ;)
 

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I think it matters not just what the exchange rate has done over the last few months/years. It matters where it will go in the future, when most of these cars will be produced and delivered. It's unlikely that the MSRP will go back down should the exchange rates change the other way significantly.
 

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I'm not defending Lotus here, or at least trying to but the price was annouced over a year ago. I'm willing to bet that there's been more of a change than 2.3% over the last year.
 

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wallabyguy said:
I'm not defending Lotus here, or at least trying to but the price was annouced over a year ago. I'm willing to bet that there's been more of a change than 2.3% over the last year.
there hasn't been
 

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atyclb said:
there hasn't been
From Wells Fargo FOREX

Early Morning Roundup Tuesday, September 02, 2003


Overnight Ranges (low to high rates)
AUD 0.6392 - 0.6459 SEK 8.36 - 8.4749 GBP 1.5620 - 1.5724
CAD 1.3770 - 1.3923 EUR 1.0833 - 1.0970 DKK 6.7668 - 6.8556
CHF 1.4000 - 1.4169 NZD 0.5685 - 0.5779 JPY 116.33 - 117.25
(Call for Current Rates)
Early Morning Roundup Wednesday, September 01, 2004


Overnight Ranges (low to high rates)
AUD 0.7016 - 0.7062 SEK 7.4852 - 7.5139 GBP 1.7918 - 1.8042
CAD 1.3083 - 1.3167 EUR 1.2156 - 1.2199 DKK 6.0972 - 6.1179
CHF 1.2601 - 1.2675 NZD 0.6543 - 0.6592 JPY 108.97 - 109.57
(Call for Current Rates)
Looks clear to me:cool:
 

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jml1952 said:
I believe that the Elise debuted in the US market when Chris' car was delivered on July 15th. I don't believe that the dollar-pound ratio has shifted 2.3% in that period of time. I suppose that Mr. English has a different perception of debut.
Well, here's what I said in the other thread. And this was before I checked Yahoo Finance after I saw this thread tonight.

Ground Loop said:
Well, there's a $945 bonus for each one of those cars.

Cool how that works, eh?

My first inclination was that perhaps the exchange rate, or worry over it, may have been behind the move by Lotus. If the dollar devalues, then even though we pay the same, they get less in pound sterling.

See the following graph as to how quickly the cost of a pound sterling rose for us Yanks between August last year and March of this year: from $1.57 to $1.90 in 6 months

<img src="http://www.miketodd.net/encyc/dollar-recent.gif">

If the pound's cost (in dollars) continued to climb at the rate shown in this graph, today a pound would cost well over $2.

So what is the cost of a pound today?

Here it is for Sept 1: Sterling was weaker at $1.7935

Here' the source. http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20040901&ID=3947829

So, actually, <b>the dollar is stronger now than in March by about 10 cents, and about 25 cents stronger than it would've been if that rate of increase had continued</b>, so I'm less inclined to disagree with your assessment now.

There may, however, be other costs we are not privy to, such as inventory taxes that Lotus is stuck paying (they still have such things in less market friendly countries you know) simply because they couldn't get their cars out of the country soon enough.

For the most part, if the price gets too high, I suspect I can back out of my deal because California consumer protection is a bitch for biz most of the time. I just don't think the price increase is as sure a good bet for Lotus or its dealers as the more cynical amongst us would be inclined to believe.

Cool off, and then decide -- it won't help you to feel screwed even if you are.

I am not the author of this, so it's likely correct: " Revenge is best when served up cold." ;)

Gil

P.S. -- I know, why bother with rational calculation when it's so much more fun to feel screwed. :rolleyes: So, at worst, I wasted my time posting this. I'm getting screwed too, but it may simply be the inevitability of dealing with an English company that has always had business difficulties.

On the brightest side, I think it's a good thing none of us must trade places with the bean counters at Lotus this week. :D
 

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And this is in the same fashion as my original post, pounds converted to dollars, but up to date.

Note that the Lotus reason just doesn't match reality. As I showed before, the steep decrease in the dollar was a problem between August 2003 and March 2004. The dollar has actually strengthened in the last several weeks.
 

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And the price could have easily adjusted for the major press release and test drives for the car mags at Skip Barber in April. Just seems a bit too contrived to hold the price for a few hundred so all of the press is out and then raise it.
 

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atyclb said:
The price wasn't announced in September 2003. It was announced in very late December.
quote:
--------------------------------------------------------------------------------
Originally posted by wallabyguy
I'm not defending Lotus here, or at least trying to but the price was annouced over a year ago. I'm willing to bet that there's been more of a change than 2.3% over the last year.
--------------------------------------------------------------------------------



there hasn't been
You may want to read what you quoted once more...:cool:
 

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The first official release of the MSRP may have been late December, but when did Lotus UK and Lotus USA actually agree on a price?

The finance people need time to calculate. Management needs time to decide. PR needs lead time to write the press releases.

Even just going back to November, the rate was as high as 0.6.

As for the Barber press event, wasn't this right before Arnie was fired? Perhaps the biggest reason Arnie was fired was because he was the one who held firm on a price of under 40k? Perhaps Lotus UK reluctantly agreed to the original MSRP, but when the dollar tanked, Arnie became the scapegoat?
 

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Obviously they wanted to build the 2 year wait list with the lower price, get everyone on the Elise drug, and then raise the price once the demand became very inelastic...drug addicts must have their drugs at any price.
 

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Hooked? That's what happened to Homer Simpson when they gave him a free cookie sample at the local mall. Then he kept buying them while complaining...
 

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I am sure they price at what they thought was a good market price in hopes that the dollar slump against the pound was temporary and would move back to the hhistorical $1.50-$1.60 per GBP in time for shipping. All would be right with the world. Unfortunately, that did not happen. Maybe they are now expecting the FX rate remain stable for a while. This would cause them to raise the price to cover some of the decline, but clearly not all of it. We are still getting it for several thousand less than the UK guys.

I am not happy about the increase, as it affects me. Just trying to explain some the potential logic behind it.

Greg
 

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Well now we know the reason for the delays....

trickle just enough cars in to get all the free "advertising" and press on the car tested at "under 40k"

then when you actually start delivering cars raise the price! brilliant! these chaps are smart.....

in fact the price when i put my deposit down was being universally quated at 39,000 - so its gone up basically 2 grand, and now you are paying for electric windows - which were originally standard. i am getting that same feeling i allways get when waiting in line at traffice court "....this is going to hurt"
 
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