THE fight between Proton Holdings Bhd and Datuk Seri Tony Fernandes is in second gear now after a lobby of statements were launched from both sides over just who has the rights to use the Team Lotus name in Formula One.
Securing the rights to the name is important for both sides. Having Team Lotus as the identity of the racing team would evoke the successful history of the racing team that secured six drivers championships and seven constructors championships.
It will also smoothen the path to advertising money. And in the high stakes and high cost sport of Formula One, securing advertising dollars is nearly as important as winning races and championships.
It then comes as no surprise that Fernandes, when he felt the relationship between Lotus Racing Formula One Team and the licensee holder to his Tune Group led motor racing team was crumbling at the seams, went out to secure the most important piece of the team’s future.
Fernandes struck a deal with David Hunt to buy Team Lotus Ventures, the owner of the name Team Lotus for the upcoming season, and in the process sidestepping an internal battle that would prove futile without the support of Group Lotus, and crucially the right to use the Lotus name, in the next Formula One season.
Lotus unveiled five new models at the Paris Motor Show. The move is its latest attempt to rebrand Lotus and have the next winner in its stable after success was last tasted by the Elise. – Bernama
Team Lotus historically holds the rights to the motor racing side of Lotus and Group Lotus is the company that owns the car making and engineering company of the Lotus name.
The timing for the move is key. Teams are already preparing for next season and with plans underway within his racing team to improve their cars and hopefully its performance in season two, certainty over the team’s name was needed.
The acquisition of the Team Lotus brand by Fernandes, however, has been disputed by Proton Holdings. Through press statements claiming Group Lotus, which it owns, is the rightful owner of the rights to the racing team in Formula One. That case is now for the British courts to decide.
Group Lotus repeated that claim when during the Paris Motor Show showcased five new Lotus models to the world.
The event in Paris underlies a large part of what the fight is about.
The move is its latest attempt to rebrand Lotus and have the next winner in its stable after success was last tasted by the Elise.
To add more weight to the rebranding momentum, Proton is attempting to launch Lotus into the motorsports world in a bigger way. And while it is sponsoring an Indy car team with one eye on having their own car race in the series next year, it believes that having a role in Formula One is essential to that ambition.
The reason for that is simple. Lotus needs to have a hands on role in motorsports if it wants to compete with Ferrari and Porsche.
Just like Mercedes, Ferrari, BMW or any other major car company in the world, a motor company with global sportscar ambition needs to take more than a backseat role on a Formula One team.
Such a commitment costs money and plans to fund such a foray was disclosed in a five year programme to improve the fortunes of Lotus. That, however, will not come cheap.
Word from the pitlane is that hundreds of millions of ringgit would be spent in the rebranding exercise of Lotus into the motorsports world. Money is being spent to upgrade the test track and the company is said to be on the lookout for an engine manufacturer.
Getting a team in Formula One is impossible today. The number of teams allowed to race in a season is full and Proton needs to partner up with an existing team or win the naming rights to Team Lotus to have any leverage.
Running a Formula One team alone, however, is not cheap and would cost in excess of RM300mil.
That is far more money than the 1.5% Proton has given towards the budget of the Lotus Racing Formula One Team this year.
Much of that cost, along with the rebranding push by Lotus, would be carried by Proton, which has financially showed a healthy position so far into its current financial year.
A launch of the replacement of the Waja this month should improve Proton’s bottomline further but money would also be needed to be spent on developing newer models that can compete with the newer cars the other makers are rolling out of their factories. Compared with the latest models, the current line up of Proton looks aged.
While the case will be decided by the British legal system, both parties have also presented their side of the story to Proton advisor Tun Mahathir Mohamad.
The dispute will remain far from over for the time being. For Fernandes, such a fight might feel normal for him.
After years of locking horns with Malaysia Airlines, his fight is now with the national car maker. The battle on the tarmac is not expected to be as lengthy as the one in the air, but equally as bitter.
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