Tuesday, June 19, 2018

Ex Lotus Boss in Unfair Dismissal Claim

Ex-Lotus Boss

Luxury car manufacturer Lotus, owned by the Malaysian company DRB- Hicom has dismissed Dany Bahar, its former Chief Executive, after an investigation into his stewardship of the company.

Bahar has lodged an Unfair Dismissal claim which DRB- Hicom are said to be vigourously defending. They believe that they have acted properly at all times. DRB- Hicom who own Lotus released a statement saying "DRB- Hicom and Lotus will vigourously oppose and/or defend the claim by Bahar, including filing counter-claims against Bahar."

Bahar who was hired in 2009 and dismissed in June has made a claim worth 6.7 million pounds for loss of earnings. Mr Bahar was paid a guaranteed annual package of at least 1.2m, which included a 600,000 salary and bonuses. The forty year old has previously worked for fellow car manufacturer Ferrari as well as drinks company Red Bull. His dismissal in June came after a temporary suspension and was said to be in order to facilitate an investigation needed in view of the losses made by Lotus. Lotus has been losing its market share to rivals Ferrari and Porsche. DRB- Hicom came to own Lotus through its acquisition of Malaysian car manufacturer Proton Holdings. It is believed that the investigation revealed an issue with Bahar's expenses. He is reported to have enjoyed the trappings of his position making use of helicopters, first class flights and five star hotels on a regular basis. DRB- Hicom have refused to comment.

Bahar was drafted in to help save the ailing company. He launched a five year plan in 2010 that focused heavily on driving the sales in the affluent Chinese market as well as other emerging markets. In addition to conquering emerging markets, Bahar also planned on introducing new models. He had pledged that Lotus would break even by the year 2014. Unfortunately, however, shares in DRB have fallen, prompting the investigation into Bahar's leadership. However, there are some industry sources who speculate that DRB- Hicom is using Bahar as a scapegoat for the failings of the Proton group.

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