Analysis: If Volvo is anything to go by Lotus deal could be a shot in the arm

Lotus cars assembly line at the Hethel plant. Picture: DENISE BRADLEY

Lotus cars assembly line at the Hethel plant. Picture: DENISE BRADLEY - Credit: Copyright: Archant 2016

The news of Lotus being bought by Chinese motoring company Geely could be a lucrative deal to benefit both sides.

Andy Russell motoring column

Andy Russell motoring column - Credit: Archant

Car-makers are desperate to break into the fast-growing Chinese market and Geely's majority stake gives the Norfolk car-maker a foot in the door, not just a toe in the water.

It's the latest move in Geely's transformation from no-frills car-maker into one with upmarket aspirations by being able to use Volvo technologies.

MORE: Group Lotus bought by Chinese car giant Geely in '£51m deal'

Geely bought Volvo Cars from Ford in 2010 - now the Swedish brand's range, image and fortunes have been transformed with investment while Geely has posted record profit and sales growth.

Volvo is still based in Europe but last month it announced its first fully electric car will be built in China, the world's largest market for electrified cars. Lotus is also famed for innovation, and has done considerable engineering on hybrid technology.

If Geely follows the Volvo route with Lotus, it's a major shot in the arm.