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Battle lines drawn in escalating Lotus row

A major fight is brewing over use of the Lotus name © Sutton Images

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The escalating row between Group Lotus, the Proton-owned British carmaker, and Team Lotus, Malaysian millionaire Tony Fernandes' Formula One team, was triggered because of a dispute over t-shirts.

Last week it was revealed Group Lotus has decided to enter feeder categories GP2 and GP3 with ART, and it has now been announced that it is continuing its IndyCar foray in 2011 whilst designing a prototype sports car for the LMP2 category.

Group Lotus also said it is upgrading its test track in Norfolk which will be eligible for "F1 testing", and director of motor sport Claudio Berro added: "It's important for people to realise just how committed we are to doing our heritage justice."

At the same time, Lotus has withdrawn its naming license to the current F1 team Lotus Racing, and has vowed to fight the team's intention to deploy the alternative Team Lotus name in 2011 and beyond. Proton is also withdrawing its on-car sponsorship of Fernandes' team.

"Unfortunately we never reached the point where we discussed extending that one year deal," said the team's chief executive Asmat. He added the naming license was terminated due to "some very trivial points", including "t-shirt design approvals of all things".

Asmat said there will need to be talks with Group Lotus about the real reasons for the termination because "we thoroughly reject" the marque's right to have done so. "Initially there was good cooperation but then issues cropped up after that and it came to a point where they said we were detrimental to their brand and infringed their rights.

"One of these was about producing t-shirts, which we were told did not follow correct procedures and they terminated our agreement about two weeks ago."

He indicated that continuing to be called Lotus is crucial for the team, which explains the decision to take the matter to London's High Court. "There are livelihoods at stake," he said. "We had to take this course of action in the courts."

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