Lotus’s new modular 562bhp 4.8-litre V8 engine could be split and used as a basis for a 2.4-litre four-pot for use in the Elise replacement from 2014.

The new V8 will be used in the mid-engined Lotus Esprit, the first in the firm’s new five-strong line-up of sports cars, which is currently penciled in for a launch at the 2013 Geneva motor show. It will then make its way into the front-engined Elite 2+2 GT at the 2013 Frankfurt motor show six months later.

Steve Cropley blog - Lotus may just pull it offRead more on the new Lotus Esprit

Lotus decided to build its own engines after customer clinics last year found people were not comfortable with the idea of £100,000 Lotuses with Toyota engines. The new Lotus V8 will be fired up for the first time in August.

The Lotus Engineering-developed engine weighs just 170kg and is short at 612mm long. Maximum power is produced at around 9000rpm. It will be stressed into the chassis and become a structural part of the cars it is used in.

Lotus opens new test track

Lotus has also revealed today that it will definitely be putting its new ‘Ethos’ city car into production in 2014. It has been co-developed with Proton and will be sold as a Lotus in Europe and North America and as a Proton in Asia.

Further clarification was also given today by Lotus on the future of the Elan in its new model line-up. The firm has decided to delay it to 2017, guaranteeing the Evora’s place in its range until the Elan is eventually made.

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