Lotus taken over by Chinese firm Geely which makes London black cabs

Lotus made a £26.7m loss in the last financial year as sales slumped by to 1,584 cars - the latest in a series of annual losses

The Lotus Exige - Lotus made a £26.7m in the last financial year as sales slumped by 242 to 1,584

The Chinese company that makes London black cabs has bought iconic British sports car manufacturer Lotus.

Geely agreed on Wednesday to buy 49.9 per cent of Malaysian car maker Proton and with that deal comes a controlling 51 per cent stake in Norwich-based Lotus.

Lotus made a £26.7m loss in the last financial year, the latest in a series of annual losses, as sales slumped by 242 cars to 1,584. Chief executive Jean-Marc Gales has been trying to turn around the company’s financial performance, helped by the popular Evora 400 model.

Lotus also runs an engineering consultancy selling sports car technology though it has not been involved in Formula 1 since the 1990s.

The stake in Proton will give Geely greater access to the Southeast Asian market, where non-Japanese brands have struggled.

It also gives Geely a stronger foothold in right-hand drive markets including the UK, India and Australia.

Geely is one of China's biggest independent vehicle makers. Founded in 1986 as a refrigerator manufacturer, it began making motorbikes in the 1990s and launched its first car in 2002. It bought Volvo from Ford in 2010 and the London Taxi Company, acquired in 2013.

The copmpany says it aims to produce three million cars across all of its operations by 2020.

"With Proton and Lotus joining the Geely Group portfolio of brands we strengthen our global footprint and develop a beachhead in Southeast Asia," said Geely executive vice president Daniel Li Donghui.

Geely plans to "restore Proton to its former glory with the support of Geely's innovative technology and management resources," said Mr Li.

"Reflecting our experience accumulated through Volvo Car's revitalisation, we also aim to unleash the full potential of Lotus cars."

Additional reporting by AP