Chinese Buyer Eyeing Lotus?

Group Lotus could be acquired by Zhejiang Youngman Lotus Automobile Co., the Chinese distributor that last year sought a stake in Saab Automobile, Autocar reports.

Malaysia's DRB-Hicom Bhd acquired a controlling stake in Lotus's owner, Proton Holdings Bhd, in January. DRB said then that it would be open to selling the iconic Lotus brand, which is saddled with an estimated $318 million in debt. Lotus hasn't made a profit since Proton bought it in 1994.

Lotus has been struggling to relaunch itself with a five-year product plan that would replace its three-car lineup with at least five new models and quadruple annual global sales to 10,000 units. Proton's own declining financial strength has hampered efforts to fund the program.

Spending on the new cars was suspended for 60 days under Malaysian law when DRB took control of Proton at the beginning of the year. That period ended in March, but Autocar says Lotus appears to remain in "financial limbo."