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Lotus suing former CEO Bahar over spending on homes, helicopters and watches

More details have come out about the legal suit and countersuit being contested between Lotus cars owner DRB-Hicom and former CEO of Lotus Dany Bahar. Bahar was brought in by Malaysian car company Proton in 2009 to turn Lotus around, and events during his tenure have made just about everyone wonder "What's going on?" That's not unusual - it can take a minute to figure things out when a new leader takes everything in a new direction - but in this case the clouds didn't clear quickly enough.
When the Malaysian government sold Proton to Malaysian auto supplier DRB-Hicom earlier this year, a forensic accounting team from Ernst & Young and The Rothschild Group started going over the books. Not long after, Bahar was suspended in June from his position and then fired. In his countersuit against DRB-Hicom, claims of lavish spending began to surface. Then the stories and leaks and rumors really began, the UK's Financial Mail reporting on more than one million pounds spent on private flights and home renovations, the New Zealand Herald talking about other executives sacked so that DRB could rearrange a 270-million-pound bank loan to Lotus, and rumors on forums about Bahar flying from his home in Norfolk to Hethel HQ and spending 30,000 pounds on motorsports books for his office.
In the latest Bloomberg report it is said that DRB-Hicom seeks 2.5 million pounds ($4 million US) from Bahar "for unauthorized expenses and overpaid salary and bonuses," including the purported expense of 3,000 pounds on watches for company managers. DRB-Hicom also says Bahar made damaging statements to the media, on top of breaching his contractual duties. Bahar's countersuit seeks $10.6 million from DRB-Hicom.

Lotus says the electric Evija is a trailblazer that will influence future cars

Lotus, a company known for making nimble sports cars, is stepping outside of its comfort zone to develop a 2,000-horsepower electric hypercar named Evija. Battery technology is heavy, so the limited-edition coupe won't be a featherweight like the Elise, but the firm's chief engineer told Autoblog it will be imbued with Lotus-ness. Keeping weight in check is easier said than done when you're dealing with four individual electric motors and a 70-kilowatt-hour lithium-ion battery pack. Matt Windle, the man in charge of the company's research and development department, explained the widespread use of composite materials like carbon fiber helps offset the mass. He cited clever packaging as another weight-saving measure. The part the steering column is mounted to is also used as a ducting for the HVAC system, for example. "We try to combine many requirements into one part to keep the weight down," Windle said. All told, the Evija (pictured) tips the scale at about 3,700 pounds. That's remarkably light for an electric hypercar, but it's heavier than any Lotus model in recent memory. And yet, Windle assured us it will still feel like a Lotus behind the wheel. That's partly because the battery pack is where the four- or six-cylinder would be in a mid-engined car rather than directly under the passenger compartment. This configuration gives the two passengers the impression of being wrapped in the cockpit while lowering the center of gravity. "We have the ability to deliver the driving dynamics and the performance that customers expect from a Lotus. It's the same dynamic setup, but with a different propulsion system," Windle pointed out. Lotus will initially cap Evija production at 130 examples, so there likely won't be enough units to fill demand, but that's par for the course when it comes to halo models. The numerous lessons learned from the project will trickle down into other models in the coming years, however, and the company has several products in the pipeline. "People do not understand that Lotus is still going. We want them to know we're still here, that we can still innovate," Windle said. "[The Evija] is not just a standalone product. The design language and the content that's in the car will give us direction as we shape future products that are coming. You'll see it as a trailblazer."

U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.