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Lotus F1 team $186 million in debt

The Lotus F1 team has fallen on some hard times. Majority-owned by investment firm Genii Capital and having little to do with the British automaker with which it shares its name, the Enstone-based outfit has been widely reported to be in serious financial trouble. The extent of those difficulties were until now unknown, but a new report from Germany's Auto Motor und Sport reveals that the team is in the red to the tune of £114 million - equivalent to $186 million at today's conversion rates.
The lack in cashflow is widely believed to have been the impetus for Kimi Raikkonen's departure from the team in order to return to cash-rich Ferrari, and was one of the major factors in selecting Pastor Maldonado to replace him instead of a more proven and accomplished driver of Raikkonen's caliber. Maldonado brings with him major sponsorship funds from Venezuelan state oil company PDVSA. In speaking with the German publication, however, Lotus F1 chairman (and Genii co-founder) Gerald Lopez revealed that the lion's share of the team's debt - £80 million or $130 million - is with Genii Capital itself, a negative balance that isn't likely to affect the team's day to day. That leaves about $56 million which the team owes to outside parties, including Raikkonen, who has yet to receive the full pay he was contracted for.
The team has opted to sit out the first test session of the Formula One season at Jerez. Its 2014 chassis isn't ready and, given the relatively cold temperatures at this point in the year, the team wouldn't expect to learn much about tire performance and degradation. As far as the new engine goes, Lopez says that any knowledge gleaned by Red Bull, Toro Rosso and Caterham at the test session will ultimately be shared with Renault and through it back to Lotus as well. Lotus engineers helped develop the new KERS system with Renault regardless, so the team already has the energy-recovery data it needs. The team will instead prepare for the second test session in Bahrain, by which point it aims to have its new car ready to kick off the season. Lopez says that it has secured the funding to offset its costs for the season ahead, and that it is working to pay down its debt.

This might be a Lotus SUV test mule

These photos could be our first look at the Lotus SUV in test mule form. The body on the chassis is clearly that of a Lynk and Co. 01 SUV, but the underpinnings are something different entirely. Perhaps the most telling bit of all is the location in which our spy shooter caught the vehicle. We're told that this was shot dangerously close to Lotus' headquarters in Hethel, England. Using a Lynk and Co. body to test the Lotus SUV makes sense when you take into account who owns both companies. Geely happens to own Lotus, Lynk and Co. and Volvo, so they're all under the same roof at this point. These spy photos appear to be hiding a chassis that doesn't exactly fit correctly under the body, though. The front fenders are far wider than they are on the 01, and the rear fenders also look like they've been messed with to fit the much larger rubber. It has a wider, more aggressive stance than the Lynk and Co. SUV, lending more evidence to this being a Lotus SUV test mule. We'd expect a Lotus SUV to handle as well as anything in the class, so all these things do make sense if that's what it is. As for what could be powering the British SUV, that's another story. This tester has yellow caution tape covering where the gas cap is on the 01 SUV, no visible exhaust and a big, yellow high voltage sticker on the windshield. All of that tells us it's most likely electrified in some form. We didn't have intel that the Lotus SUV would be electric previously, but there's every chance they could go down that road. The Lotus 130 hypercar is going to be all-electric. And Volvo sells plug-in hybrids now, so the tech could be borrowed from there, too. Of course, Volvo doesn't have the same priorities as Lotus does with weight reduction and handling, so don't consider anything a done deal quite yet. We can't actually confirm that the vehicle in question is a Lotus underneath, but hopefully more photos and information make their way to us soon. There's still a long way to go in the development process if Lotus is only testing on mules now, so look for plenty more to come on this vehicle.

Lotus says it's hiring 200 new engineers in effort to expand

Lotus is making moves to rise back up in the automotive world. A report from The Telegraph says the British company will hire 200 new engineers. This batch of hiring comes from the pockets of new Chinese owner Geely. The plans also include the opening of a new engineering center in the U.K. away from its longtime home in Norfolk. Lotus CEO, Phip Popham said this about the new moves. "Lotus has been in survival mode for many years. We're taking on people here and also in the Midlands. We need to tap into the industrial resource outside Norfolk to help our growth," Popham said. These new hires are all part of a multi-billion dollar investment into Lotus from Geely to try and turn the company around. Ultimately, Lotus wants to triple its current production all the way up to 5,000 cars per year. One of the initiatives from this investment is an all-electric hypercar we saw teased not too long ago. Popham also spoke of making cars with a slightly different focus than the Lotus we know of today. "A car not just for the weekend, but one you can live with," Popham says. Ideas of a Lotus SUV or grand tourer have bounced around in the recent past, and those still appear to be in the company's plans. The British brand plans on tapping Geely for many items it doesn't already have, according to the report. These include modern items like digital display screens and parts required for electrification of its vehicles. A new platform meant to house these "livable" Lotus cars is said to be in the works.