Lola set to go into administration

[Wouter Melissen]

Devastating news from Lola:

Lola Cars International Ltd was formed in 1958. In recent years, significant investment has been made in technology and capability in the motorsports business as well as diversifying and creating Lola Composites Limited, serving the defence, aerospace, communications, renewable energy, automotive and motorsports markets.

The latest economic downturn and the decision of HMRC not to pay ongoing R&D tax credits has caused a serious cashflow problem for the businesses. It is with enormous regret that a decision has been taken to issue Notices of intention to appoint an Administrator to Lola Cars International Limited and Lola Composites Limited. This step allows the board to continue its discussions with possible investors and prospective purchasers with a view to securing the best outcome for the staff, creditors and customers of both businesses.

The Lola board have declined to make further comment until Monday 21st May.

[Matra et Alpine]

yep, sad news and another manufcaturer in the UK gets penalised by a tax change by a government that is intent on protecting banks and finance but willing to let reasearch and manufacturing go to the wall - again. Roll on independance !!

[Kitdy]

Originally Posted by Wouter Melissen

Devastating news from Lola:

The rumours were true. This is a bad day for motorsport.

Originally Posted by Matra et Alpine

yep, sad news and another manufcaturer in the UK gets penalised by a tax change by a government that is intent on protecting banks and finance but willing to let reasearch and manufacturing go to the wall - again. Roll on independance !!

Vote early; vote often!

[faksta]

Shame that such a manufacturer as Lola suffers. Hope they will be able to overcome this and find a worthy (and wealthy) new owner.

[culver]

I think part of the issue for Lola is what is the state of racing anymore? In the old days companies like Lola, Lotus and Reynard made race cars for classes top to bottom. Amateurs bought their Formula Fords while the big teams bought their Indy cars. That model has fallen apart. There is little profit in the jr series and most are a shadow of what they used to be. The big names no longer participate in the smaller classes. For the classes from Formula Atlantic and up most series moved to spec chassis as an attempt to hold cost down. It's often debatable how well that works but what it does do is create the have and have not manufactures. If you can land the contract your good. Lola missed the recent Indy car contract so no dice there. Theses days their are fewer top flight series that will let you participate if you show up with a better mouse trap (even F1).
Sad to see it but not entirely surprised by it. I know nothing of UK tax laws but I suspect that if a tax code change killed the company it wasn't that healthy to begin with.

[faksta]

Lola is still one of the big names in endurance racing, and for me they are associated with it mostly. Losing IndyCar contract probably hit them hard, I agree, but I wonder why didn't they take a step lower from ALMS/ELMS/WEC and build a small prototype for VdeV, Speed Euroseries and so on, especially with them taking part in Lola-Caterham SP.300/R project, which they might use as a basic design. Those cars could shine in smaller series and hillclimbs and promote the make on a wider basis. Yes, they wouldn't have such a media coverage, but they could provide a customer inflow.

[faksta]

By the way, I wonder if it could have something with unhealthy Lotus deals?

[Matra et Alpine]

Lola did lots of sub contract work on composites construcinot for defense too, do it may have been a factor.

BUT the biggest change was the con-dem government decided to remove tax credits on R&D investments. Thus making the UK pretty much the only place on the planet that penalised manufacturers doing reasearch and develompent work. But hey, the bankers still get to know they'll be bailed out again