My Lotus Cars turnaround plan ( Fee Free!!!)

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Podger
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Location: Herefordshire UK

My Lotus Cars turnaround plan ( Fee Free!!!)

Post by Podger »

My proposal for any new shareholders in Lotus Cars


Hack out all the expensive senior management , so in simple terms , if your last job was with Porche, or Ferrari , your gone............

Recruit a new CEO from within the senior Management of JLR or Renault (or similar)

The Board must recruit one or two ' business angels' to the operating Board with turn around experience / showing past positive results.

Have a ' Special Development Team' with the company , either recruit new people or redeploy existing ' bright innovative ' people. This team do NOTHING else but development . And they do this within a STRICTY CONTROLLED -& to an agreed BUDGET.

Recruit some young designers from Coventry University College of Design. Even try some on ' work experience' like other manufacturer's �have done , pick the best of that bunch.

Reduce factory labour force.

Produce Departmental budgets reflecting reduced turnover . Enforce those budgets stringently.

Mothball / reduce the production lines

ONLY launch ONE new car every 2 or 3 years , and concentrate on getting that ONE car right before launch.

Base ALL models on a maximum of TWO chassis' for the whole existing and future range.

Base ALL models on a maximum of TWO engines �for the whole existing and future range, and then just adjust the state of tune of those engines by model.

Reduce the company's gearing/borrowing , SELL unused buildings & RACE TRACK �( Lotus can hire it , when needed) �and rent out those buildings that may be used in the future, IF there is sufficient growth.

Install management 'think' that is ROI . ( Return on Investment)

The management must think 'small' till the business is consolidated on a sound financial footing .

.

CONSOLIDATE the business , chase profit , NOT turnover, which probably means �cutting back turnover by at least a third and overhead by a similar amount or more.


Budget Should be achieve the targets below as a minimum:

Return on Capital of 22%

Stock turnover ratio Circa 22%

Return on Net Assets 25%

Return on Total Assets 10%

Debt ratio of 1.2 %

PRE TAX MARGIN ���6% +



[color:#CC0000]CONSOLIDATE!![/color]!!! :)
Last edited by Podger on Mon Oct 27, 2014 2:51 pm, edited 1 time in total.

ade
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Re: My turnaround plan fot Lotus

Post by ade »

That'll never catch on, you seem to be talking sense! :o

tim_marra
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Re: My turnaround plan fot Lotus

Post by tim_marra »

Are you that spotty little Russian oik that killed TVR

:crazy:










:D

Podger
Posts: 806
Joined: Tue Oct 04, 2011 5:43 pm
Location: Herefordshire UK

Re: My turnaround plan fot Lotus

Post by Podger »

[quote=tim_marra]Are you that spotty little Russian oik that killed TVR

:crazy:[/quote]

No! I'm not! :)

jfk
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Re: My turnaround plan fot Lotus

Post by jfk »

Podger , the shrooms are wearing off I feel ...
You are talking far too much sense ...
Best go pick some more ;)
Burstner/Ducato Motorhome

AndyD
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Location: No Fing idea ..

Re: My turnaround plan fot Lotus

Post by AndyD »

Podger .. I think you missed a rather important peice of the puzzle - market.

What/who is your target market ? and what do they expect from a LOTUS vehicle etc etc

Its great having a super LEAN company but you still have to shift product at the right price .. the market in UK aint gonna save LOTUS no matter what you cut it down to.

IDG
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Joined: Fri May 23, 2003 11:00 am
Location: Hampshire, UK

Re: My turnaround plan fot Lotus

Post by IDG »

Hey what's wrong with managers?! We're (sorry, they're) essential!!! :)

More seriously, particularly essential when operating to budgets is concerned. Give engineers a cheque book, shudder.

Ian :s
Image

Podger
Posts: 806
Joined: Tue Oct 04, 2011 5:43 pm
Location: Herefordshire UK

Re: My turnaround plan fot Lotus

Post by Podger »

JFK , I can't get anymore mushrooms here , pity !!! ;)


Andy D , The market target �( niche ) remains similar, but the product doesn't try to be a poor mans Porsche or Ferrari. As ever it's world market. I need to say I'd close that colossus of a marketing & PR Department , and sub' all that activity to agencies , that can be switched on/ off as required. In my own experience they do a better job , than in house people. :grin:

IDG , I said that the Special Projects/ Development team had a budget that would be tightly controlled , and monitored. No engineers with cheque books in my model!!� ;)

Podger
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Joined: Tue Oct 04, 2011 5:43 pm
Location: Herefordshire UK

Re: My turnaround plan fot Lotus

Post by Podger »

[quote=ade]That'll never catch on, you seem to be talking sense! :o [/quote]

Thanks , it will one day , I hope !! :grin:

tim_marra
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Re: My turnaround plan fot Lotus

Post by tim_marra »

This should be in the muppet section.....

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