Lotus defies downturn

Lotus has bucked the global trend for car companies to post falling profits by reporting a £2 million profit for 2007.

Although the firm’s turnover fell from £133m to £108m, it improved on 2006’s £5m loss by concentrating on its engineering and consultancy business. Lotus Engineering, a separate business to Lotus Cars, specialises in lightweight vehicles and fuel-efficient technology.

"Over the last few months, the demand for our green and environmentally sustainable technologies has increased,” said Lotus MD Mike Kimberly. “Many of the world's car companies work with us on alternative-fuel vehicles, electric and hybrid vehicle solutions and lightweight structures."

Although Lotus was hit hard in last month’s poor new car sales, with registrations down from 58 last October to 38 this year, Lotus has managed to cut costs and make its business more efficient.

Its year-to-date sales compare well with last year’s, with 600 cars sold so far this year compared to 605 by a similar point in 2007.

“We are very closely watching the state of the global economy, and it is obvious that the world is changing very rapidly," said Kimberly. "Lotus, by being small and flexible, is set to deal with the new demands from our global consumer and business customers.”