Road car company says F1 sponsorship was not a financial arrangement

Group Lotus has dismissed speculation that the ending of its Formula 1 sponsorship deal with Lotus F1 Team will have any impact on its future.

Group Lotus parent company Proton was recently sold to Malaysian firm DRB-Hicom. As a result, an announcement over DRB's plans for Group Lotus is expected imminently - with options as diverse as committing to the firm's current five-year plan or selling up being evaluated.

Yesterday www.autosport.com revealed that Lotus F1 was ending its sponsorship deal with Group Lotus, prompting speculation that DRB-Hicom was poised to announce its plans for the road car company.

However, a Group Lotus spokesman stressed that the F1 sponsorship deal was not a financial arrangement and that it has no link to Group Lotus's future.

A Group Lotus statement said: "Group Lotus and Lotus F1 Team are brand partners, the F1 team uses the strength of the Lotus name to promote themselves, and in return Group Lotus benefits from F1 exposure and the ambassadorship of its drivers, and the deal is a non-cost one."

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7 April 2012

Sadly it seems anything to do with Group Lotus is turning into a farce, apart from their engineering activities for 3rd parties.

Most disappointing.

7 April 2012

[quote Autocar]A Group Lotus statement said: "Group Lotus and Lotus F1 Team are brand partners, the F1 team uses the strength of the Lotus name to promote themselves, and in return Group Lotus benefits from F1 exposure and the ambassadorship of its drivers, and the deal is a non-cost one."[/quote]

Yes, I'm sure Unilever and Microsoft are thrilled to know that the brand name they just signed up with has bailed out on the team.

It's hard to see how they are 'brand partners' if Group Lotus is not contributing anything to the team other than a licence to use the Lotus name. Tony Fernandes can tell you how easily that licence can be revoked as and when Dany Bahar changes his mind. If the team continues to run huge Lotus logos on the cars from China onwards it can only be because Gerard Lopez is gearing up for a bid to buy the company. Otherwise they may as well offer the space to a real sponsor with real money.

I guess this also bodes ill for the 347,000 other teams that Lotus sponsors around the racing world.

8 April 2012

Lotus simply does not have the type of road cars to back up its F1 campaign rather than vice versa if they really want F1 sponsor to be put to use unless of course they get Renault Sport to start supplying them with engines for maybe a 4.0 V8 Exige at 500hp or something manic like that. The F1 team is reaching out its hand where the car division is not grabbing, reminds me of Renault F1 with its weak fleet unlike Subaru and Mitsubishi fully capitalizing race on sunday, sell on monday with the WRX and Evo. F1 does well in marketing up market automotive products which initially is what Lotus was .

8 April 2012

One has to wonder what kind of contract that was agreed. How is the financial meltdown going to imact on the F1 team. Can they afford Kimi's salary? Can they afford to continue their development? This is not good news for the team and their many employees. I seen the money tree being chopped down and the tam relying on what they have until and IF they find another sponsor, especially as they need permission to change names in case a worthwhile partner can be found

8 April 2012

[quote petrolheadinrussia]One has to wonder what kind of contract that was agreed.[/quote]

Well the contract was between a Danny Bahar managed company and some kind of Private Equity/Hedge Fund firm.

So now we know how much integrity is likely to be available.

...the band was playing Dixie: double-four time...

8 April 2012

[quote cimardinius]

Well the contract was between a Danny Bahar managed company and some kind of Private Equity/Hedge Fund firm.

So now we know how much integrity is likely to be available.

[/quote]

In fairness to Genii and Gerard Lopez, he seems to have acted with the team's best interests at heart, rather than the usual vulture fund mentality (CVC/Cerberus). Although I do realise that saying one private equity firm is better than another is like saying a leech is better than a tapeworm...

As for Dany Bahar, the sooner he is removed from the automotive world, the better. He has turned the Lotus name into a farce, and I do hope the door hits him on the way out.

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