China's Geely buys controlling stakes in Saxo Bank and Lotus
China's Geely is raising its stake in Denmark's Saxo Bank to 51.5% in a deal worth more than $300m. The Chinese car maker believes that the bank's financial technology knowhow could help it expand in Asia. Saxo Bank's income mainly comes from its online trading platforms, which are used by foreign exchange dealers among others. At the same time, Geely has acquired a controlling 51% stake in the Lotus car company, leaving 49% with Malaysia's Etika Automotive. So far, every car firm that Geely has acquired has made a fast financial turnaround and it is hoped additional investment in Lotus will have the same effect.

What we reported last October has become official today: Geely Holding has acquired a majority 51-percent stake in Lotus. With 49 percent remaining at Etika Automotive, the Malaysian group behind Proton, Mr. Jean-Marc Gales will continue in his role as Lotus CEO, a job he started three years ago.

This is indeed great news. The lack of investment from the Malaysian side held the brand back dearly over the past few years. Meanwhile, every car company recently purchased by Geely's Chairman Li has made an instant turn for the better. Now, Lotus gets its chance.

Lotus

Geely bought Volvo from Ford back in 2010. Not long after, the company evolved into a Swedish success story, with a fresh model line and a separate performance brand that's just about to develop its own electric sports car.

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The Volvo XC40's compact platform is now shared with a new carmaker called Lynk & Co, which is trying to capture your imagination with a completely different sales model, bolder shapes and a lower price point than any Volvo. Lynk & Co might also become the first Chinese manufacturer to succeed in America—its models will be built to global standards, on what's essentially a proven Volvo platform.

Then, there's The London Taxi Company, a factory just a stone's throw away from Lotus. After becoming part of the Geely empire, LTC came up with a brand new electric platform that used not only for the next London cab, but also a wide range of electric commercial vehicles aimed at the European market.

The London Taxi Company

Now, Lotus joins the team, and the brand is already off to a good start. In the first half of 2017, "Lotus has already entered into a positive cash flow situation" with sales rising by 10 percent.

On its quest to survive, the small British brand always knew how to keep up the interest with exciting products like the Evora GT430. But that certainly won't be enough to survive in the long run. So from now on, Lotus will use its engineering know-how to become a global player using Geely's investment. And while we wait for its wide range of authentic performance vehicles to appear, the new Elise can't be here soon enough.

An Elise that they will sell in America.