Club Arnage

Just seen that Lola may be having a few problems. 2 of the top people have left and a statement is due later this week.

Its a company with a lot of diverse interests, just hope its not spread itself a bit thin.

Just received from Lola:

Statement from Lola Group Holdings Limited

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.

 :(

That's really sad news. I hope they can get things turned around. I've always had a huge amount of love for Lola sportscars, the T70 and the T290 series being some of my all time favourites, hell I even named my first born child Lola. I'll be gutted if we lose them.

Good luck to all at Lola and let's keep our fingers crossed that it's not the end.

Sign of the times.  But so sad.  Digits crossed for a positive outcome and I hope they do make a good deal but I won't hold my breath.

http://www.lolacars.com/newsstory.asp?newsId=425 (http://www.lolacars.com/newsstory.asp?newsId=425)

Good luck to everyone at Lola.

Its a sad sign of the times.

There are many ways lola could restart should it come the that. A pre pack many already be in process and with the cooperation of creditors could keep the name alive.

I am not sure if Lola lease the cars out to teams, if it does then that may present a problem over ownership should it all go tits up.

Sad days and stressfull times for the workforce no doubt.

Home is in Huntingdon, and the Lola factory is just up the road.  Be a major blow if they were unable to continue and I hope they are able to find a way through it; they had the abortive attempt to enter F1 in 1997 which led directly to the last rescue then by Martin Birrane which had been successful to date, including the diversification into other areas for their composites expertise.  Just hope that a package or deal can be sorted.

MG Mark 

Sadly the axe has already been wielded big time. Over half of the staff on the racing side have already been asked to go and about a third of the composites staff.

Somebody suggested to me last night that they thought the composites side could continue on its own and maybe they are looking for a buyer for the racing side. Tony Fernandez' name was mentioned. Interesting.

It's a real shame as I heard a very strong rumour about a new LMP1 project last week. My source was a guy who worked on the Taurus Sport project that took the first diesel to LM in 04/05?

He said that a very major car manufacturer was working with Lola, Williams and Caterpiller on a feasibility study that could lead to a major assault on the WEC in 2015 with a diesel/hybrid. He couldn't tell me any more at this stage but he did say it was a very serious project that could challenge Audi.

Only time will tell.

Whilst I'm sure they'll find a buyer, the strategy seems a bit odd.  Usually, you go looking for a buyer first, and would pick a large firm that has loads of mergers and acquisitions experts, and automotive experts, if you needed them, rather than pick somebody from Maidstone, the well known centre of the motorsport industry, if you only include chaved up Novas.

I'm now worried that as a result this could become another Spice/Cooper/TVR/MGRover, where some foreigner buys the bits and promptly disappears with them

Hey I'm from Maidstone whats wrong with that? and many years ago Rootes and Fiat both built cars in the town centre, by the way who is this person from maidstone with cash to burn i would like to meet them

A rather frank interview with Lola Cars' director Martin Birrane over on DSC. HRMC and the ACO get a drubbing.

http://www.dailysportscar.com/viewArticle.cfm?articleUID=DFC51D0D-BA5D-726A-1CAA7F84094DC760&custUID=B8D0C140-1143-FDC9-3585334353ABFD39&_sessionID=WFLMCNIXFH&_subSessionID=8JAASRHW3J (http://www.dailysportscar.com/viewArticle.cfm?articleUID=DFC51D0D-BA5D-726A-1CAA7F84094DC760&custUID=B8D0C140-1143-FDC9-3585334353ABFD39&_sessionID=WFLMCNIXFH&_subSessionID=8JAASRHW3J)

Ditto that ...

Drayson also gets a bit of stick, sounds like it was everyone else to blame bar himself.......

Interesting that he did manage to hive of some if not all of the key assets such as the wind tunnel and retains ownership of other parts of the company including the IPR of all the old cars and I would guess the stuff still on the drawing board as well as the name Lola.

In essence it sounds like any buyer would just be getting the old stock without the ability to build more without paying a royalty.

As far as I'm concerned, Lola stopped being Lola when Eric Broadley sold it to Martin Birrane in 1999.

To his credit, Martin has ploughed millions into the company, and did save it from fading into the history books, but it has always seemed to me as if he was treating it like a rich man's plaything rather than a genuine enterprise.

http://www.autosport.com/news/report.php/id/103257

Its been finally put to sleep.

(but will rise again as the name Lola, as are the IP rights are still owned by Birrane)

It's a shame, but predicatable given than Birrane kept hold of the best bits, and they weren't included in the sale (unless of course he bought it).  So, will we see a new Lola, or will this be the end of them for good?  I wonder what (if anything) the existing Lola runners will use in 2013.  Both Rebellion and Dyson have spent a lot of time, effort and money getting their cars competitive, but unless they can get spares from somewhere else there's no point in running a Lola chassis next year sadly.

Perhaps someone might do a 'Pescarolo' the B12/80 and give the design a new lease of life. Birrane owns the rights, so I guess his property developer instincts might not let the current cars just fade gently into the history books.

http://auto-racing.speedtv.com/article/industry-lola-set-to-continue-under-new-ownership/

Good news?

As far as I understand it.. that means that the name has a new owner, but the old Lola is still moribund. The composites business is the only remaining operative arm of the business that has a vestige of direct lineage to Eric Broadley via Martin Birrane. A brand as important as Lola is unlikely to be allowed to vegetate, but like many other names in the automotive world, it will probably be bought, sold, used and abused over the coming decades.

Along the lines of Lotus?  Agree with GF, Lola ceased to be Lola when Eric Broadley sold the company.  Some iconic names should simply be allowed to remain fondly in our memory, and not get resurrected every five or ten years by some wealthy fool, or Asian corporation.  Brabham was another name that should have been allowed to ride off into the sunset gracefully, not dragged through the mud the way it was.
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