News About Lotus Dealers in the U.S.

Here's an interesting article from November 2022 with an interview of Matt Windle where he talks about adding dealerships in the U.S. This is the relevant part from the article (bold emphasis is mine):

"What potential annual volume is Lotus expecting in the U.S. once you get all your vehicles launched?

The potential is huge. I think we could be doing 10,000 cars a year over here. So, I mean, we’ve seen it already. We’ve got 10,000 deposits for Emira, globally. The U.S. is the biggest market for that. There’s been good uptake on the Eletre already even though it’s not going to be here for a few years. The U.S. has always been a very, very important market for Lotus.

How will Lotus’ dealer network change with the influx of new vehicles and expected volume increase?

We’ve got 36 dealers in the U.S. and we’ve got 10 that are under contract now, signed and coming on line. We’re probably looking at adding about 10 new dealers a year for the next three years. So we know we’ve got to grow the representation. It’s really important for those dealers that start with us as well."

Here's the full article:

Lotus chief adds dealers as new vehicles are coming – Automotive News

Lotus Cars Managing Director Matt Windle last month visited the company's North American operations, met with dealers and attended the 41st annual Lotus Owners Gathering at a racetrack in West Virginia.His visit comes as Lotus expands its dealer network and readies for the biggest onslaught of...

www.thefastauto.com

 

[KAR120C]

...and any of the new dealer points that have opened in the last 2 years with Emira "coming" have had no product to sell for a long time now. Talk about frustration...

We, as customers, are frustrated with the delays. The smaller dealerships are seeing an unplanned lack of cash flow from their Emira sales and are really frustrated. Rough situation for everyone. I hope the US cert process doesn't drag on like the Evora's.

 

[TomE]

They'll be Lotus dealerships, they won't say Geely, but they're the ones bankrolling everything. With their plans to produce and sell 150,000 electric vehicles a year under the Lotus brand name, that's going to require more than 36 dealers in the U.S. If it isn't obvious by now, it should be obvious that leaving that in the hands of the team at Hethel doesn't make any sense. It's taken everything they've got just to get the Emira off the ground and going. Geely's plans are much bigger than that.

Lotus dealerships are going to be extremely important for all the Lotus vehicles, not just the Emira. Porsche dealers handle all Porsches, Ferrari dealers handle all Ferraris, etc. If Geely wants to be in that league they're going to have to be the ones to make the dealer network happen.

If you watched Harry's latest video, I thought it was very interesting that he said Lotus Hethel is trying to keep a low profile in the press right now, because they don't really want any more orders for the Emira. They're 3 years deep at the moment with 10,000 in their order book. That doesn't sound like a division that's going to be gung ho on being responsible for opening new dealerships. If they're overwhelmed with the existing orders from actual customers, not even dealer inventory yet, can you imagine what it would be like if they were contemplating making 150,000 vehicles a year?

Looking at it from Geely's perspective, as an owner/investor with plans on that scale, I would be putting someone in the position to expand and develop the brand on a global scale that can support 150,000 A YEAR, not 10,000 over 3 years. I believe Geely just hired someone for a position like that. I can't remember where I saw it, but it was recently.

Of course Geely have a strong interest but it is Lotus who own the dealership model, adding new dealers, direct sales channels etc. in the US, dealers are all currently independent businesses contracted with Lotus Cars USA. New dealers added recently are under the same structure.

I’m guessing the recent appointment you’re referring to is Mike Johnstone, ex Volvo so a Geely transfer, who is now VP Commercial for Group Lotus and hence responsible for sales across all Lotus vehicles. He reports to the Group Lotus CEO. So it’s in the hands of Group Lotus not Lotus Cars or Geely.

Group Lotus appoints Mike Johnstone to lead global commercial team - Lotus Cars Media Site

media.lotuscars.com

 

[Concept24]

The dealership that is closest to me is part of a much larger European sales dealership, so I'm sure the Emira wait is not hurting them at all. There used to be a Lotus dealership within 15 miles of where I live, but that closed, years ago.

 

[T6061]

The dealership that is closest to me is part of a much larger European sales dealership, so I'm sure the Emira wait is not hurting them at all. There used to be a Lotus dealership within 15 miles of where I live, but that closed, years ago.

Eurocar by chance? The old Lotus dealership used to be on PCH in Newport Beach, no?

 

[Concept24]

Eurocar by chance? The old Lotus dealership used to be on PCH in Newport Beach, no?

Yes, Eurocar contains Orange County Lotus. The closed dealership I was referring to was in San Diego.

 

[Eagle7]

Of course Geely have a strong interest but it is Lotus who own the dealership model, adding new dealers, direct sales channels etc. in the US, dealers are all currently independent businesses contracted with Lotus Cars USA. New dealers added recently are under the same structure.

I’m guessing the recent appointment you’re referring to is Mike Johnstone, ex Volvo so a Geely transfer, who is now VP Commercial for Group Lotus and hence responsible for sales across all Lotus vehicles. He reports to the Group Lotus CEO. So it’s in the hands of Group Lotus not Lotus Cars or Geely.

Group Lotus appoints Mike Johnstone to lead global commercial team - Lotus Cars Media Site

media.lotuscars.com

And Geely owns Lotus. After seeing what Lotus did with the dealer network in the U.K., I can't imagine Geely is going to want to let their future sales in the U.S. be handled by less than 3 dozen hodge podge dealers spread out over the entire country. They should at least have one dealer in the capital of every state, and multiple dealers in the high-density metropolitan areas of the major states.

Yeah I think that's the guy. I expect a much more focused effort at expanding their dealer presence before Eletre's and the other upcoming EV's begin rolling off the line in the quantities they want to produce them. They'll be making more cars in one month than Hethel can in an entire year. Those vehicles will have to go somewhere, and that means dealers.

 

[KCMO68_510]

And Geely owns Lotus. After seeing what Lotus did with the dealer network in the U.K., I can't imagine Geely is going to want to let their future sales in the U.S. be handled by less than 3 dozen hodge podge dealers spread out over the entire country. They should at least have one dealer in the capital of every state, and multiple dealers in the high-density metropolitan areas of the major states.

Yeah I think that's the guy. I expect a much more focused effort at expanding their dealer presence before Eletre's and the other upcoming EV's begin rolling off the line in the quantities they want to produce them. They'll be making more cars in one month than Hethel can in an entire year. Those vehicles will have to go somewhere, and that means dealers.

I like where you are headed, but let's not pick capitals. Out here in the midwest the capitals are small and in the middle of nowhere.

Simpler idea. If a city has an NFL, MLB, NBA, NHL franchise, then it should have a Lotus dealership. That probably hits the 50 biggest cities easier.

 

[Lotustoronto]

I have been thinking about Lotus and North America for a while and decided to do a little research.

My conclusion is Geely's focus is not the American market. (shocking, I know haha) I believe they currently prioritize in this order; China/Asia > Britain > Europe > North America > ROW

My reasons are listed below;

1. They purchased Lotus, a known motorsport old world heritage brand, to place it a top it's holdings as the flagship. They clearly did this to gain market share in a category they are lacking in (European premium sporting brand)
2. They openly have said they wish to take on the likes of Porsche and other top European marquees and obviously the elephant in the room Tesla.

3. Porsche sold almost 100K vehicles to the Chinese market in 2022. Tesla sold 137K electric vehicles in china. Lotus is targeting 40-50K Eletre worldwide. 5-6K Emira's worldwide. In the future including type 133-134 (approx 110K per year) that total number will bring Lotus producing approx 170K units by 2028/29 for the entire world. My point here is that even if Lotus hit all their sales goals, they do not have enough capacity to penetrate the US market in a meaningful way. Tesla currently sells between 300-500K units in the US alone. 2K Emira's and maybe 5-10K Eletre's per annum is always going to be considered very very niche in North America. They just don't currently have the production capacity for more.

4. To me it is clear that Geely is looking to take on Porsche, Tesla and other European EV's in the Chinese home market first and foremost. They have the capacity to do so, the backing and now the brand with a new factory that can produce at the levels needed to compete in their market. Europe and UK will be placed next important, not only for being the birth place of the iconic Lotus brand, but also the EV market is just a higher priority to the europeans. And for Lotus to be considered a premium European Brand, they need European presence. They will push the Lotus brand and prioritize UK/EU customers over ROW. Then comes the USA. When you consider their production capacity, it's no wonder why the North American market is not a priority. They do realize that a dealer network is somewhat setup, existing customers and a following for the Lotus branding, it would make no sense to pull out, but prioritize no chance. We come third/fourth and based on their production numbers, I can not see it being any other way.

That's my 2 cents. I would not expect major massive changes in how Lotus deals with North America. At least not for the next 5 years. Maybe if they begin to expand production sites or increase capacities at Hethel, 10 years from now may be a different story and perhaps that is when we see a massive increase in dealer networks etc.

You can tell the difference on YouTube when you watch Lotus at all the European events or Goodwood and then compare that to the North American Emira tour or LOG41 "army of Emiras". I'm not saying the don't care, because they do. It's just not a priority.

 

[Panda47]

I have a new Lotus dealer just 30 minutes from me now. This wasn't yet announced when I made my deposit so my purchasing dealer is 2 hours way. As of now, the new Lotus of Philadelphia is just sharing space with a Porsche dealership (which is kinda funny) and one of their Porsche techs is being trained to work on Lotus. I'm interested to see how this plays out and if they'll eventually get their own building. Either way, it's reassuring to know a service center is just 30 minutes away now.

I'm in New Zealand and the only Lotus dealer have their cars serviced at a McLaren outlet

 

[KusaKusa]

I have been thinking about Lotus and North America for a while and decided to do a little research.

My conclusion is Geely's focus is not the American market. (shocking, I know haha) I believe they currently prioritize in this order; China/Asia > Britain > Europe > North America > ROW

My reasons are listed below;

1. They purchased Lotus, a known motorsport old world heritage brand, to place it a top it's holdings as the flagship. They clearly did this to gain market share in a category they are lacking in (European premium sporting brand)
2. They openly have said they wish to take on the likes of Porsche and other top European marquees and obviously the elephant in the room Tesla.

3. Porsche sold almost 100K vehicles to the Chinese market in 2022. Tesla sold 137K electric vehicles in china. Lotus is targeting 40-50K Eletre worldwide. 5-6K Emira's worldwide. In the future including type 133-134 (approx 110K per year) that total number will bring Lotus producing approx 170K units by 2028/29 for the entire world. My point here is that even if Lotus hit all their sales goals, they do not have enough capacity to penetrate the US market in a meaningful way. Tesla currently sells between 300-500K units in the US alone. 2K Emira's and maybe 5-10K Eletre's per annum is always going to be considered very very niche in North America. They just don't currently have the production capacity for more.

4. To me it is clear that Geely is looking to take on Porsche, Tesla and other European EV's in the Chinese home market first and foremost. They have the capacity to do so, the backing and now the brand with a new factory that can produce at the levels needed to compete in their market. Europe and UK will be placed next important, not only for being the birth place of the iconic Lotus brand, but also the EV market is just a higher priority to the europeans. And for Lotus to be considered a premium European Brand, they need European presence. They will push the Lotus brand and prioritize UK/EU customers over ROW. Then comes the USA. When you consider their production capacity, it's no wonder why the North American market is not a priority. They do realize that a dealer network is somewhat setup, existing customers and a following for the Lotus branding, it would make no sense to pull out, but prioritize no chance. We come third/fourth and based on their production numbers, I can not see it being any other way.

That's my 2 cents. I would not expect major massive changes in how Lotus deals with North America. At least not for the next 5 years. Maybe if they begin to expand production sites or increase capacities at Hethel, 10 years from now may be a different story and perhaps that is when we see a massive increase in dealer networks etc.

You can tell the difference on YouTube when you watch Lotus at all the European events or Goodwood and then compare that to the North American Emira tour or LOG41 "army of Emiras". I'm not saying the don't care, because they do. It's just not a priority.

Lotus' investor presentation for their SPAC shows where their priorities lie. They view the US BEV market as pretty small, especially when you compare it to the size of their entire auto market and how much effort it'd take to commercialize in the US.

 

[Lotustoronto]

Lotus' investor presentation for their SPAC shows where their priorities lie. They view the US BEV market as pretty small, especially when you compare it to the size of their entire auto market and how much effort it'd take to commercialize in the US.

well this slide would have been more helpful then my long winded post

 

[benjh1028]

Lotus' investor presentation for their SPAC shows where their priorities lie. They view the US BEV market as pretty small, especially when you compare it to the size of their entire auto market and how much effort it'd take to commercialize in the US.

Anytime a company creates a SPAC I get nervous about the seriousness and sustainability of that brand.

 

[khamai]

The dealership that is closest to me is part of a much larger European sales dealership, so I'm sure the Emira wait is not hurting them at all. There used to be a Lotus dealership within 15 miles of where I live, but that closed, years ago.

In the early 90s there were 6 dealers in SoCal.
Bauer Motors - Anaheim
Westlake Lotus - Thousand Oaks
Newport Imports - Newport Beach
Lotus of Beverly Hills - Beverly Hills
Kensington Motors - Long Beach
Rancho Olds-Saab-Lotus - San Diego

Cheers,
Kiyoshi

 

[benjh1028]

Curious as to whether this is an industry standard ratio of cars sold to # of dealerships needed. Might be that 30 dealerships in NA is all that can be supported.

 

[Maurice R]

Curious as to whether this is an industry standard ratio of cars sold to # of dealerships needed. Might be that 30 dealerships in NA is all that can be supported.

😂 maybe no dealership in NA by end of year. They have hundreds of orders on books but zero revenue. They will all be bankrupt. I hope not but??
They may have hund

 

[Concept24]

I don't think Fiat/Stellantis has dedicated dealerships for Fiats, correct? As was mentioned previously, perhaps Geely needs to combine Volvo and Lotus when Lotus dealerships are not already combined with other makes, as is the case with the closest Lotus dealership to me.