Geely to spend $2.6 billion to make Lotus great again

Chinese car giant, Zhejiang Geely Holding Group, is considering a huge cash injection of around £1.5 billion ($A2.6b) to help revive its recently acquired Lotus brand, it has been revealed.

According to insiders who work closely with the Chinese car-maker, which also owns Volvo, deliberations are already taking place following's Geely's move to take a controlling 51 per cent in the British brand.

Speaking to Automotive News, which broke the story, the insider said: "Geely is fully committed to restoring Lotus into being a leading global luxury brand".

Under ambitious plans, disclosed by the insider, Geely will expand the Norfolk brand's Hethel plant and hire 200 engineers.

Next, it will fund the creation of a second factory in the West Midlands and add a new design and innovation centre in Coventry.

Lotus' new parent company reportedly committed to the Coventry-based design studio two months ago.

The motivation behind the significant cash injection is that Geely is desperate for its new acquisition to be held in the same esteem as Porsche and even Ferrari.

It also wants the car-maker to significantly increase sales.

In the UK, Lotus' strongest market, in the first seven months of 2018 the brand only sold 145 cars -- 25 per cent down on the same period last year.

The reports of the huge investment can only signal good things for the struggling car-maker.

Geely's turnaround of Volvo, which has increased its sales and profits on the back of a series of new models, has been praised by industry analysts.

Following its purchase of Volvo back in 2010, Geely was quick to invest an incredible $11 billion ($A15b) in modernising factories, developing new platforms and launching well-received models like the new XC40, XC60 and XC90.