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LONDON, England - Formula 1's Team Lotus has bought Caterham Cars, a deal linking the niche UK sports car maker to the glamour world of GP racing.
The takeover by team principal Tony Fernandes and fellow Malaysian associates Kamarudin Meranun and SM Nasarudin turns the wheel full circle for the company's famous lightweight Seven model.
The affordable British-built sports car, launched in 1957 and still raced on tracks around the world, was designed by the late Colin Chapman (founder of the original Team Lotus) before he ended production and sold the rights to Caterham in 1973.
MANAGEMENT STAYS
"It's a commercial deal, more than anything," Fernandes told Reuters before a presentation at Duxford airfield in eastern England. "We think now we have a jewel in the crown in Caterham. There's a little bit of Lotus DNA there but we are able to take the Caterham brand to a much larger audience and transfer technology from the F1 team into Caterham Cars.
"We always wanted to be a manufacturer. Now we are a tiny manufacturer but everyone starts small - you've got to start somewhere," he added. "At least now have the genesis and a strategy of what we are trying to put together."
Caterham's existing management team will remain under the leadership of former Lotus Cars executive Ansar Ali.
The announcement comes at a time when Team Lotus is in a legal battle with Malaysian-owned Group Lotus and automaker parent Proton over the use of the evocative Lotus brand name.
The London High Court is due to make a ruling in May, 2011 and the Caterham deal will give Fernandes a fall-back option should the decision go against him - although the Malaysian was adamant that that was not his rationale.
'SOMETHING BETTER NOW'
"This isn't being done... just in case we lose the case," he said. "We've invested a lot in bringing Lotus back into racing. We've acquired Team Lotus and spent a lot of money building the brand. It's not something we want to give up.”
Fernandes, asked whether Caterham could ultimately become his team's title sponsor, replied: “I and the shareholders want to wait and see what happens with the court case then we'll make plans.
“Obviously the plan was to try to do it (become a manufacturer) with Group Lotus but that hasn't worked out - we think we've got something better now.”
Fernandes, who also runs budget airline AirAsia, renamed his team in 2010 after a debut season as Lotus Racing under a licensing agreement that Proton subsequently terminated.
"We think we have a brand just like AirAsia that we can develop and build into something very special," he said of Caterham, whose technical association with former F1 constructor Lola could also be of benefit.
MORE CONFUSION
Chapman's original Team Lotus was one of the most successful in the sport with 79 race victories and seven Constructors' titles before folding in 1994. David Hunt, brother of the late champion James, acquired the rights to the name and sold them to Fernandes in 2010.
Group Lotus, questioning the validity of those rights, has ambitious plans of its own since entering F1 for the 2011 season as partner and title sponsor to the Renault team.
To add to the confusion, French automaker Renault provides engines to both the rival Lotus teams.
The takeover by team principal Tony Fernandes and fellow Malaysian associates Kamarudin Meranun and SM Nasarudin turns the wheel full circle for the company's famous lightweight Seven model.
The affordable British-built sports car, launched in 1957 and still raced on tracks around the world, was designed by the late Colin Chapman (founder of the original Team Lotus) before he ended production and sold the rights to Caterham in 1973.
MANAGEMENT STAYS
"It's a commercial deal, more than anything," Fernandes told Reuters before a presentation at Duxford airfield in eastern England. "We think now we have a jewel in the crown in Caterham. There's a little bit of Lotus DNA there but we are able to take the Caterham brand to a much larger audience and transfer technology from the F1 team into Caterham Cars.
"We always wanted to be a manufacturer. Now we are a tiny manufacturer but everyone starts small - you've got to start somewhere," he added. "At least now have the genesis and a strategy of what we are trying to put together."
Caterham's existing management team will remain under the leadership of former Lotus Cars executive Ansar Ali.
The announcement comes at a time when Team Lotus is in a legal battle with Malaysian-owned Group Lotus and automaker parent Proton over the use of the evocative Lotus brand name.
The London High Court is due to make a ruling in May, 2011 and the Caterham deal will give Fernandes a fall-back option should the decision go against him - although the Malaysian was adamant that that was not his rationale.
'SOMETHING BETTER NOW'
"This isn't being done... just in case we lose the case," he said. "We've invested a lot in bringing Lotus back into racing. We've acquired Team Lotus and spent a lot of money building the brand. It's not something we want to give up.”
Fernandes, asked whether Caterham could ultimately become his team's title sponsor, replied: “I and the shareholders want to wait and see what happens with the court case then we'll make plans.
“Obviously the plan was to try to do it (become a manufacturer) with Group Lotus but that hasn't worked out - we think we've got something better now.”
Fernandes, who also runs budget airline AirAsia, renamed his team in 2010 after a debut season as Lotus Racing under a licensing agreement that Proton subsequently terminated.
"We think we have a brand just like AirAsia that we can develop and build into something very special," he said of Caterham, whose technical association with former F1 constructor Lola could also be of benefit.
MORE CONFUSION
Chapman's original Team Lotus was one of the most successful in the sport with 79 race victories and seven Constructors' titles before folding in 1994. David Hunt, brother of the late champion James, acquired the rights to the name and sold them to Fernandes in 2010.
Group Lotus, questioning the validity of those rights, has ambitious plans of its own since entering F1 for the 2011 season as partner and title sponsor to the Renault team.
To add to the confusion, French automaker Renault provides engines to both the rival Lotus teams.