06:00 22 June 2016 via edp24.co.uk
The boss of iconic carmaker Lotus said the company was back on track and gearing up to be profitable after an extraordinary turnaround which is set to secure the long-term future of the business in Norfolk.
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Mr Gales, who joined the business in 2014, has overseen a three year turnaround plan which has helped to transform the business from top to bottom.
That led to some tough decisions including reducing staff numbers from 1,200 to just over 900 worldwide.
But, as the company gets set to celebrate 50 years of manufacturing at Hethel, he insisted that being in Norfolk was pivotal to the future success of the business, and he paid tribute to the hardwork of staff in Norfolk for helping to turning the business around as well as the support of the firm’s Malaysian owners DRB-HICOM for its continued backing of the business.
“We always said that we are committed to Norfolk. It is important that the company is stable and the company is sustainable in the long term. We want to stay here. We feel so rooted here that there is no discussion about leaving Norfolk.
“We have a clear commitment to Norfolk, and a clear commitment to the 803 people that we employ in Norfolk.
“We have a turnaround plan that’s firmly on track as well - we have increased revenue - we are planning to do over 2,000 cars this year. We have reduced our costs - the overheads are down 40% in two years, so we have achieved a massive overhead reduction.
“The plan was a three year plan - at the end of the second year we should be cash self-sufficient and starting this financial year which was April 1 we should be profitable,” he said. “The car side was always bankrolled by the engineering business - now the car side of the business is profitable, for the first time since the company was created. and that’s amazing,
“This is what we are really proud of. That is good news for Norfolk. We have said many times that ‘Lotus is Norfolk and Norfolk is Lotus’. We are a world famous sports car brand - rooted here in Norfolk.
He said the plan was based on re-focusing the business on its traditions as a pioneering manufacturer of lightweight and benchmark handling sports cars, and looking forensically at all of its processes. In addition the business has significantly expanded its worldwide dealer network giving the business more opportunities to sell cars globally, while it is also targeting the US market with the launch of a new Evora 400.
“We have increased our sales in the market - the target this year is over 2,000 and we have a record order book, with 760 cars on order, which is what we didn’t have before.
“Every company has a head, but it is the people who do it, they need to do it. You can set directions and put the focus in and do the planning, we had different working groups working on all the different areas of cost reduction, and improvement, so that everyone knew exactly what to do here.
“This company has a brilliant future, and that’s the most important thing we have achieved over the last two years, making this company sustainable for the long term, making sure it can prosper.
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