Proton subsidiary Lotus Engineering is to design a new niche range for a volume car manufacturer, using UK-developed technology to slash build costs.

Lotus declines to name its client but says the Versatile Vehicle Architecture (VVA) business is worth £35m and could lead to the production of 10,000 vehicles a year.

“VVA will allow customers to release a full niche range with minimised economic impact,” says commercial director Simon Wood.