Lotus suspends boss Danny Bahar

The shock news that its outspoken chief executive, flambouyant former Ferrari executive Dany Bahar, has been dumped came on the weekend from the new owners of Lotus, Malaysian conglomerate DRB-Hicom.

Automotive News reported that Bahar has been temporarily suspended after "an operational review''. The review was sparked by an investigation made by unnamed sources into Bahar's conduct, the Automotive News says.

Bahar's suspension comes on the heels of growing rumours about the future of the niche carmaker that, until this year was owned by Malaysian car manufacturer Proton.

Lotus' future was further in doubt after accounting firm KPMG was said to be the intermediary in a sale of Lotus to a Chinese buyer. But Automotive News reports that a DRB-Hicom spokesman said it was "business as usual'' at the Lotus headquarters in the east-England county of Norfolk.

He says that in Bahar's absence, three representatives of DRB-Hicom have been authorised to manage the group,. Bahar, a former Ferrari sales executive, joined Lotus in 2009 with ambitious plans to launch new products and quadruple annual car sales to 8000.

DRB-Hicom bought Proton, the Malaysian parent company of Group Lotus, in January. Proton, a maker of sedans and taxis, bought control of Lotus in 1996, but has never made a profit from the British unit.

Before Proton, Lotus's owners included General Motors. Shanghai Automotive Industry Corp - which has a joint venture with GM in China - has denied it is interested in buying Lotus.