Caterham rescued by Lotus boss

Caterham “lived in debt,” says Chris van Wyck, managing director of Caterham Cars Australia.

The simple British sports car company is now in the hands of Tony Fernandez, a Malaysian businessman who owns Air Asia Bhd and the Lotus Grand Prix team. There are even rumors that Fernandes could rename his F1 team to Caterham if he loses an ongoing dispute with Renault F1 over the use of the Lotus name in Formula One.

The buyout in Australia has clear implications as Caterham has only sold three vehicles since 2007 and is facing a production halt in 2013 because the vehicles do not come with the ESP stability control system that is becoming mandatory across the country from 2012.

“Now we live on loan. I hope this means good things,” says Chris van Wyck, managing director of Caterham Cars Australia.

“Caterhams is telling me they won't bother with this traction control crap because they don't need it for Europe. But I assume that Caterham will have more support and investment in the future. Everything I hear about the new owner is above par. In this case, the chances of them doing extrasensory perception may increase.”

Caterham has never been a big seller in Australia, due in part to the relatively high prices of the car, which has largely remained unchanged since Lotus founder Colin Chapman created it as the Lotus 7 in the 1950s.

The Caterham is a no-frills, open two-seater that is often sold as a complete car - which is not possible in Australia - in other countries. The price cuts this year have generated more interest, but van Wyck remains frustrated by the lack of interest in cars.

“At this point, it really is a Claytons franchise. I have only sold three cars since 2007,” he admits. “The so-called ‘club’ request in Australia is at $30,000 to $55,000. And we are not there. This is very frustrating because I love the brand and the product. I thought we'd have a few sales now that we're on the road of $60,000 or $XNUMX, but that didn't happen."

Fernandez says he intends to turn Caterham, which sold just 500 cars in 2010, into a global brand in the exclusive sports car class of brands like Aston Martin.

Caterham, named after the London suburb where it was originally based, has about 100 employees at a plant south of the British capital and posted a $2 million profit last year. But van Wyk saw one positive from buying Fernandez and a new Caterham painted in the same colors as this year's Lotus F1 cars driven by Jarno Trulli and Heikki Kovalainen.

“I have a very good potential client who wants a car in Lotus livery. So it's a positive result,” says van Wyk.