Results 1 to 8 of 8

Thread: Lola set to go into administration

  1. #1
    Join Date
    Apr 2003
    Location
    Rozenburg
    Posts
    10,013

    Lola set to go into administration

    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.
    If you should see a man walking down a crowded street talking aloud to himself, don't run in the opposite direction, but run towards him, because he's a poet. You have nothing to fear from the poet - but the truth.

    (Ted Joans)

  2. #2
    Join Date
    Dec 2003
    Location
    nr Edinburgh, Whisky-soaked Scotland
    Posts
    27,775
    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 !!
    "A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'

  3. #3
    Join Date
    Oct 2006
    Posts
    10,227
    Quote Originally Posted by Wouter Melissen View Post
    Devastating news from Lola:
    The rumours were true. This is a bad day for motorsport.

    Quote Originally Posted by Matra et Alpine View Post
    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!

  4. #4
    Join Date
    Jun 2007
    Location
    Moscow, Russia
    Posts
    3,545
    Shame that such a manufacturer as Lola suffers. Hope they will be able to overcome this and find a worthy (and wealthy) new owner.

  5. #5
    Join Date
    Mar 2005
    Posts
    1,508
    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.

  6. #6
    Join Date
    Jun 2007
    Location
    Moscow, Russia
    Posts
    3,545
    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.

  7. #7
    Join Date
    Jun 2007
    Location
    Moscow, Russia
    Posts
    3,545
    By the way, I wonder if it could have something with unhealthy Lotus deals?

  8. #8
    Join Date
    Dec 2003
    Location
    nr Edinburgh, Whisky-soaked Scotland
    Posts
    27,775
    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
    "A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Gran Turismo 5
    By Sauc3 in forum Gaming
    Replies: 1020
    Last Post: 05-19-2014, 03:16 PM
  2. Lola T280 Cosworth in full detail and Chevron of similar vintage ...
    By Wouter Melissen in forum Website discussion
    Replies: 0
    Last Post: 05-01-2012, 02:29 AM
  3. Two of the first IMSA GTP racers from Lola and March ...
    By Wouter Melissen in forum Website discussion
    Replies: 1
    Last Post: 09-30-2011, 08:33 AM
  4. Lola (?) Ultimo by Michelotti
    By ribatejo69 in forum General Automotive
    Replies: 7
    Last Post: 09-10-2006, 05:18 PM
  5. Replies: 10
    Last Post: 10-01-2005, 06:21 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •