Firm serves two years' notice to all European dealers; new network to be revealed in Paris

Lotus will terminate the contracts of all its European dealerships in July 2012 as part of plans to completely overhaul its dealership network.

Lotus CEO Dany Bahar has written to the Norfolk firm’s entire European dealership network informing them that their contracts will not be renewed and will expire on 18 July 2012.

Full story: Lotus reveals radical new direction

The sports car firm is acting within the current terms of its dealerships’ contracts, which outlines that two-year’s notice must be given for termination.

Plans for a radical overhaul of the European dealer network will be revealed in the period after the Paris motor show, the location where Lotus’s new five-year blueprint will be announced, outlining its future building a new range of more luxurious GTs and sports cars.

Lotus has confirmed the current dealer network would be able to apply for new dealerships or franchises under new terms, but it has yet to reveal precise details on what those terms will be.

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16

8 July 2010

I'll have to drop into my local (Bell & Colvill, the first ever Lotus dealer) and ask them how they'll be affected... I'm not sure I understand why this is necessary.

8 July 2010

My local too. Be a shame to see them stop selling Lotus, especially as straight across the road you've got some of the twistiest, most fun - albeit slightly dangerous and thin in parts - roads in Surrey.

8 July 2010

[quote Straight Six Man]I'll have to drop into my local (Bell & Colvill, the first ever Lotus dealer) and ask them how they'll be affected... I'm not sure I understand why this is necessary.
[/quote]

To assist you I have highlighted a number of sections relevant to your post.

Lotus will terminate the contracts of all its European dealerships in July 2012 as part of plans to completely overhaul its dealership network.

This part means Bell & Collvill will be given notice on their Lotus dealership contract.

Lotus CEO Dany Bahar has written to the Norfolk firm’s entire European dealership network informing them that their contracts will not be renewed and will expire on 18 July 2012.

This part means that on the 19th of July 2012 they won't be a Lotus dealer anymore.

Full story: Lotus reveals radical new direction

The sports car firm is acting within the current terms of its dealerships’ contracts, which outlines that two-year’s notice must be given for termination.

Plans for a radical overhaul of the European dealer network will be revealed at the Paris motor show alongside Lotus’s new five-year blueprint, outlining its future building a new range of more luxurious GTs and sports cars.

This part is the reason why they are getting rid of all their dealers.

Lotus has confirmed the current dealer network would be able to apply for new dealerships or franchises under new terms, but it has yet to reveal precise details on what those terms will be.

And finally this could mean that if Bell & Collvill spend silly amounts of money to make their dealership more swanky they will get the chance to sell the overpriced and doomed to fail Lotus cars the misguided management want to sell instead of the excellent Elise and their ilk whose march up the price scale is not welcome.

Last point, had you read the actual article there would be no need for me to reply in such a patronising way !!!

8 July 2010

[quote Cheltenhamshire]

Last point, had you read the actual article there would be no need for me to reply in such a patronising way !!!

[/quote]

+ 1

8 July 2010

No need to be so sarcastic guys. When people talk about European dealers in the industry, it often means outside of the UK - i.e. Continental Europe. I didn't automatically assume they were including British Lotus dealers when reading the article, Particularly a long standing one such as B&C which is probably one of the few putting through some decent volume.

8 July 2010

[quote julianphillips]Particularly a long standing one such as B&C which is probably one of the few putting through some decent volume.[/quote]

They will have the opportunity to tender to continue being a Lotus dealer - if the factory wants to keep them, and they want to comply with the new requirements. It means Lotus can set new dealer standards across the board, and enforce them uniformly, and is a fairly basic step for a manufacturer trying to compete with some very well-run rivals.

It's not massive news, really, unless they actually axe all the dealers and go with new ones instead when the time comes. A large prestige German manufacturer recently terminated all aftersales contracts across Europe and made their dealers re-bid for them, and i didn't see that in the news... It allowed them to weed out the small-time garages who had manufacturer approval granted many years ago but who didn't comply with 21st century standards, and was principally aimed at certain parts of Europe, but it also gave them an opportunity to make all their dealers improve their act.

8 July 2010

Agreed

8 July 2010

[quote Autocar]Lotus will terminate the contracts of all its European dealerships in July 2012 as part of plans to completely overhaul its dealership network.[/quote]

I wish Vauxhall would do the same thing.

8 July 2010

[quote Lee23404]I wish Vauxhall would do the same thing.[/quote]

Seconded.

But this, and the ridiculous march upmarket that goes with it, will probably kill Lotus. Someone in charge really doesn't understand what Lotus is about.

8 July 2010

[quote disco.stu]A large prestige German manufacturer recently terminated all aftersales contracts across Europe and made their dealers re-bid for them, and i didn't see that in the news... [/quote]

If you mean Mercedes I seem to recall that this was fairly big news at the time.

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