Group Lotus Restructures

Lotus plc is restructuring itself and warns it may fire as many as 325 people, roughly 25% of its workforce.

CEO Jean-Marc Gales says the iconic British sports car maker needs "the right organizational structure" to build a sustainable future. The company, which hasn't made a profit in 16 years, posted 159 million (€202 million) in red ink for the fiscal year ended last March 31.

Lotus was acquired two years ago by Malaysian group DRB-Hicom Bhd. DRB quickly cancelled the company's ambitious plan to quadruple sales to 8,000 units in five years by rolling out five new cars during the period.

Instead, DRB agree to build only one of the new models. It also fired CEO Dany Bahar and installed turnaround expert Gales, former brands chief at PSA Peugeot Citroen.