Lotus was almost at financial break-even in 2014

The years 2012 and 2013 were very financially negative for Lotus. In 2012, the team had lost 56 million pounds sterling while the losses increased even further the following season, reaching almost 65 million pounds sterling. In two years, it lost the astronomical sum of 170 million euros.

Under these conditions, especially since Gérard Lopez, the co-owner of Lotus, brought in a new leader to implement a drastic cost-cutting plan. Now that the sale to Renault is formalized, the team has been able to file its accounts for the 2014 fiscal year. It must be noted that the result was much less negative since the deficit was “only” 8.3 million pounds sterling.

Nevertheless, two exceptional items are included in this amount, namely the 3.6 million pounds paid to Renault for breaking its engine supply contract and the 1.8 million related to bonuses paid to departing employees. The operating losses thus reached the modest level of three million pounds.

If 2014 was a financial success, the sporting aspect was greatly impacted, as Matthew Carter himself acknowledged last May: « In fact, we probably went too far last year. We cut too many heads. In hindsight, we were understaffed in the racing team last year. So, we didn’t have a chief race engineer. We also reduced our workforce in aerodynamics and design. »

It will be interesting to know the results of the 2015 financial year. Indeed, expenses were cut even further, especially when the acquisition of Renault became more certain. At that point, there was no question of incurring any unnecessary expenses, which led to equipment blocks until the last minute during several race weekends.

Alan Permane, the track operations director of Lotus, acknowledged after the Spa-Francorchamps podium that performance wasn’t the only concern for his superiors: « We are experiencing a very, very difficult season. It’s our worst season from a financial standpoint. We’ve had to make significant savings on parts. Getting the cars on track is an enormous effort every week. So getting on the podium is simply incredible. »

With the participation of www.racingbusiness.fr