By 1980, Group Lotus was in serious financial trouble. Production had dropped from 1,200 units per year to a mere 383. The combined reasons were that the world was in the middle of an economic recession , sales in the key United States market had virtually collapsed and there had been limited development of the then model range. [9] In early 1982, Chapman came to an agreement with Toyota to exchange intellectual property and applied expertise. This initially resulted in Lotus Engineering helping to develop the Mk2 Toyota Supra , also known as the Toyota Celica XX . Secondly, it allowed Lotus to launch the new Lotus Excel to replace the ageing Lotus Eclat . Using drivetrain and other components from Toyota enabled Lotus to sell the Excel for £1,109 less than the outgoing Eclat. [9] Looking to re-enter the North American market, Chapman was approached by young law professor and investment banking consultant, Joe Bianco, who ...
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