Inflation and Emira pricing

[freefall_junkie]

Many of you will have seen the latest UK CPI figure out today, a 40 year high at 9.1%. Less widely reported is the PPI figure (i.e. what manufacturers pay their suppliers), which is now a truly staggering 22.1% , by far the highest since records began in 1985. In the face of this I think Matt Windle's commitment last week to holding prices for the FE Emira is pretty remarkable. I have no idea how Lotus are managing to do this, but it cannot have been an easy decision, and it must surely be causing them some financial pain. So, with the frustrations about poor Lotus comms with deposit holders and production delays, credit where it is due. Well done Lotus for sticking to previously announced Emira pricing

 

[New to Lotus]

Yes I think so too fe price honoured then increase base when you can configure one?

 

[Wizardwings]

Yes I think so too fe price honoured then increase base when you can configure one?

More than likely. I can't see Lotus taking a bath on every car sold in the long term by sticking to pre-inflation pricing.

 

[vision]

Yes I think so too fe price honoured then increase base when you can configure one?

I have thought from the start that the base Emira price of £60K was pie in the sky? I got shot down on this some time ago when I suggested this was an ex VAT price. However TG said £60K, I cannot wait for the prices to be revealed!.
I think anyone who committed early, I'm the 10th July will get a fantastic car, I'm afraid that new purchasers will financial pay by sitting on the fence.
Anyway, let see what evolves from the FOS tomorrow.

 

[OUI131]

More than likely. I can't see Lotus taking a bath on every car sold in the long term by sticking to pre-inflation pricing.

Lotus probably have fixed price contracts for many parts , but no doubt their will be some kind of price escalation in the contract, maybe on an agreed timeline, so yes prices For FE cars probably sorted but the next batch, maybe not.

 

[Leonard]

I have thought from the start that the base Emira price of £60K was pie in the sky? I got shot down on this some time ago when I suggested this was an ex VAT price. However TG said £60K, I cannot wait for the prices to be revealed!.
I think anyone who committed early, I'm the 10th July will get a fantastic car, I'm afraid that new purchasers will financial pay by sitting on the fence.
Anyway, let see what evolves from the FOS tomorrow.

The sub 60k was instrumental to their early marketing. It will cause a few ripples if they don't hold to it.
Geely is more than wealthy enough to cover the shortfall in exchange for the goodwill and bums on Lotus seats if they so wanted...
I would like to know the Base car and options pricing before committing to the FE but I guess that won't happen unless the FE delays are ridiculous

 

[emiraspain]

from my days in manufacturing, many years ago, I would have thought your parts suppliers provide you pricing on various basis, and depending on your contract with them, and certainly in the case of the company in which I worked, the prices would have been fixed for at least a year if not a certain quantity of units.
Remember airlines pre purchase their fuel to protect them from price fluctuations, well I am sure Lotus would be cleaver enough to do the same, right? Best not answer that...

I would have thought, but i may be wrong, that the main companies who have variable pricing are those who sell the raw materials, but further down the chain, well they all just have to eat it for a while until they re-negotiate. The power companies in the UK went out of business for this very reason, they could not "eat it".
I doubt if a parts supplier can suddenly or on a monthly basis or whatever, increase prices, irrelevant of the CIP or PPI and as these costs have only risen over the last 3 4 5 months, then I don't think Lotus are struggling yet in terms of the FE cars, but further down the line for sure they will raise their prices as they see their suppliers doing the same.
I guess it would be interesting to know which group of customers the video was sent to? I didnt get it due to an internal error at Lotus, but did customers who have only paid the 1st deposit get the email for example? If they did, then I would say he is in that case committing to all FE customers to keep the price fixed.

I still believe that this car is "almost" a loss leader for Lotus. I dont think Geely expected to make much if any money here. Its a long term plan and they will, I am sure, make quite a bit of money on the chinese made EV's, just as Aston do and Porsche do(not chinese made). The Emira is to get the name out there again, stronger, more internationally, an on going expensive marketing campaign if you like, but far from a cash cow, even with the large order book.

This is what I believe at least....

 

[Leonard]

from my days in manufacturing, many years ago, I would have thought your parts suppliers provide you pricing on various basis, and depending on your contract with them, and certainly in the case of the company in which I worked, the prices would have been fixed for at least a year if not a certain quantity of units.
Remember airlines pre purchase their fuel to protect them from price fluctuations, well I am sure Lotus would be cleaver enough to do the same, right? Best not answer that...

I would have thought, but i may be wrong, that the main companies who have variable pricing are those who sell the raw materials, but further down the chain, well they all just have to eat it for a while until they re-negotiate. The power companies in the UK went out of business for this very reason, they could not "eat it".
I doubt if a parts supplier can suddenly or on a monthly basis or whatever, increase prices, irrelevant of the CIP or PPI and as these costs have only risen over the last 3 4 5 months, then I don't think Lotus are struggling yet in terms of the FE cars, but further down the line for sure they will raise their prices as they see their suppliers doing the same.
I guess it would be interesting to know which group of customers the video was sent to? I didnt get it due to an internal error at Lotus, but did customers who have only paid the 1st deposit get the email for example? If they did, then I would say he is in that case committing to all FE customers to keep the price fixed.

I still believe that this car is "almost" a loss leader for Lotus. I dont think Geely expected to make much if any money here. Its a long term plan and they will, I am sure, make quite a bit of money on the chinese made EV's, just as Aston do and Porsche do(not chinese made). The Emira is to get the name out there again, stronger, more internationally, an on going expensive marketing campaign if you like, but far from a cash cow, even with the large order book.

This is what I believe at least....

Yup agree with all of that, thanks for taking the time to write it. I couldn't drag myself away from my pint
long enough

 

[vision]

The sub 60k eas instrumental to their early marketing. It will cause a few ripples if they don't hold to it.
Geely is more than wealthy enough to cover the shortfall in exchange for the goodwill and bums on Lotus seats if they so wanted...
I would like to know the Base car and options pricing before committing to the FE but I guess that won't happen unless the FE delays are ridiculous

I think we need to get our cars first so we can review them properly with real feedback, over the next 6 months. Whatever happens once my car is delivered its a keeper but for the next 2-3 years and limited mileage and world issues its solid financially and will be wanted worldwide for the right price.

 

[Leonard]

I think we need to get our cars first so we can review them properly with real feedback, over the next 6 months. Whatever happens once my car is delivered its a keeper but for the next 2-3 years and limited mileage and world issues its solid financially and will be wanted worldwide for the right price.

I would never be 100% sure about that.
You won't take a bath on it, but I don't think it's iron clad

 

[vision]

I would never be 100% sure about that.
You won't take a bath on it, but I don't think it's iron clad

Nothing is but to have something this exclusive at this time is interesting. Oh forgot to ask if there's a train station near my collection point just in case I need to get there in a hurry!

 

[Lotustoronto]

from my days in manufacturing, many years ago, I would have thought your parts suppliers provide you pricing on various basis, and depending on your contract with them, and certainly in the case of the company in which I worked, the prices would have been fixed for at least a year if not a certain quantity of units.
Remember airlines pre purchase their fuel to protect them from price fluctuations, well I am sure Lotus would be cleaver enough to do the same, right? Best not answer that...

I would have thought, but i may be wrong, that the main companies who have variable pricing are those who sell the raw materials, but further down the chain, well they all just have to eat it for a while until they re-negotiate. The power companies in the UK went out of business for this very reason, they could not "eat it".
I doubt if a parts supplier can suddenly or on a monthly basis or whatever, increase prices, irrelevant of the CIP or PPI and as these costs have only risen over the last 3 4 5 months, then I don't think Lotus are struggling yet in terms of the FE cars, but further down the line for sure they will raise their prices as they see their suppliers doing the same.
I guess it would be interesting to know which group of customers the video was sent to? I didnt get it due to an internal error at Lotus, but did customers who have only paid the 1st deposit get the email for example? If they did, then I would say he is in that case committing to all FE customers to keep the price fixed.

I still believe that this car is "almost" a loss leader for Lotus. I dont think Geely expected to make much if any money here. Its a long term plan and they will, I am sure, make quite a bit of money on the chinese made EV's, just as Aston do and Porsche do(not chinese made). The Emira is to get the name out there again, stronger, more internationally, an on going expensive marketing campaign if you like, but far from a cash cow, even with the large order book.

This is what I believe at least....

This post I think is accurate. They are using the GM principles here. The Corvette could be sold for a higher price, the demand is there, but they do not because it keeps customers happy that 1. Depreciation isn't that bad and 2. Gets them to look at other product from that brand and creates its own eco-system. They will keep it steady with pricing. The electric cars is what they want to scale up and compete directly with the larger European manufacturers. Not a small feat to achieve! But if I had to guess it would be the ultimate goal here. If they get the electric cars to be good, I can see them over take a few of the larger European brands from the EV standpoint. Merc's EV's have been terrible and aside from the Taycan I can't think of a global European EV I would want. Perhaps BMW is doing some of the best EV's in this class. Time will tell.

 

[First Lotus]

I got it and I ordered about October 2021 with expected delivery spring summer 23.
I have (until video) been harbouring a fear of a price increase Jan 2023. But they have been allayed (somewhat).

 

[Climber]

I got it and I ordered about October 2021 with expected delivery spring summer 23.
I have (until video) been harbouring a fear of a price increase Jan 2023. But they have been allayed (somewhat).

Many of you will have seen the latest UK CPI figure out today, a 40 year high at 9.1%. Less widely reported is the PPI figure (i.e. what manufacturers pay their suppliers), which is now a truly staggering 22.1% , by far the highest since records began in 1985. In the face of this I think Matt Windle's commitment last week to holding prices for the FE Emira is pretty remarkable. I have no idea how Lotus are managing to do this, but it cannot have been an easy decision, and it must surely be causing them some financial pain. So, with the frustrations about poor Lotus comms with deposit holders and production delays, credit where it is due. Well done Lotus for sticking to previously announced Emira pricing

In manufacturing purchasing contracts or for a set amount ( volume) during a set period of time 12 to 24months depending on lead times. This is done so that supplier can plan and justify their investments. All First addition models will keep their advertised sales price. Something after the first +4,000 cars the price will be adjusted. Their are variable cost the will also reduce their margins during the first year, but do know that Lotus will not ship a single car at a lost. All business models have upper and lower limits to address unknowns. I would wager that sometime in the first quarter of next year 2023 the prices will be adjusted.

 

[jimbobc]

Did everyone who put a deposit in the UK get Matt’s video by email or just the early depositors?