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Lotus denies any possible repercussions from F1 sponsorship termination

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Lotus denies any possible repercussions from F1 sponsorship termination

Speculation going on has been rife that Group Lotus will suffer as a result of pulling the cord on their sponsorship deal with its Lotus Formula 1 (F1) team. Although on the face of it this seems like another concluded business deal; there are questions being raised whether this action would ultimately affect their future.

It is expected that DRB-Hicom; the Malaysian firm which bought the group’s parent company, will announce upcoming plans for Group Lotus. After the termination of the F1 deal, it is speculated that DRB will contemplate disclosing options varying from pledging to the firm’s long term plan or selling up.

Therefore the debate still remains unanswered – whether will the Group’s actions impair their future economic benefits. There are numerous ways to look at it and people have been voicing out their opinions regarding the termination of the deal.

  • First of all, Formula 1 is a gold mine known to the whole world. Almost everyone knows that F1 can generate huge revenues with an ever growing reputation to back it up. With the money on the table, one must question why the Group terminated the sponsorship deal in the first place. Would a reasonable person have done the same thing when put in their shoes?
  • Another way to look at it would be to consider the Group’s other prospects. If the Group really pulled the plug because of better prospects on the horizon, then the action would be deemed as a wise and bold move. But consider this; how many road going car does Group Lotus sell in a year and how much are they actually pulling in from their sales? Just by taking a look on the streets, you can have a fair idea how well is Group Lotus doing in terms of chasing sales figures. One thing is for sure, it certainly is no match for the Hondas’ and the Toyota’s on the roads.

However a spokesperson for the Group commented the f1 sponsorship deal did not have any bearings on the Group’s future. The Group also released a statement saying that the Group and the Lotus F1 team are brand partners and they work cohesively together to achieve their individual benefits. The symbiosis between them can only bring them good for each other with the deal being a non-financial agreement.

The debate is still going on behind the reasoning of the deal. Although some are supportive of the Group’s actions, a majority are against the idea altogether. It is unfair to stake a claim for this debate because we are unaware of the things going on behind the closed doors of the Group. Maybe something is amiss and there is a need to pull the plug? Or maybe the deal is bringing in more problems than benefits? Time will tell whether this action would bring more benefits rather than shortcomings.

Customers looking at a new or used Lotus purchase won’t be affected so feel free to apply now for a credit line for your Car Lease for bad credit or finance alternative.

 

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