The early 1990s was particularly difficult for Group Lotus, as the repercussions of global recession were severe for all sports car manufacturers.
During 1992 the Lotus dealer franchise network contracted from 29 to 19 outlets, as production of the long-running Excel and recently relaunched Elan M100 ended.
The newly developed racing car utilised the type 114 steel tubular chassis paired with a body of the Esprit S4 made entirely from carbon fibre.
The engine was extensively reworked with the addition of one Garrett T4 turbocharger, a flat plane crankshaft, forged aluminium pistons, multipoint fuel injection and an air-to-air intercooler.
Brakes were AP Racing carbon-ceramic discs with 6-piston callipers at the front and the rear, and Penske triple-adjustable gas-pressurised shock absorbers were used at all four wheels with the tires being provided by Michelin.
The silhouette was very similar to the road car but aside from rear light lenses, exterior door handles and badges virtually all else was either purpose made or were dedicated race components.
These design alternations were incorporated as part of a wider package of aerodynamic improvements that included a carbon fibre splitter, diffuser and revised floor.
The new car debuted for the 1996 GT Series at the Circuit Paul Ricard, however, its retirement with a fractured exhaust highlighted the fragility that would persist throughout the season.
Unfortunately it soon became apparent that to be successful in the GT1 category required similar budgets and development schedule of the Porsche, McLaren and Mercedes teams.
The improvements to the 114 did not match its stunning debut season, although its presence at international sportscar races helped to sell over 250 V8 Esprits in 1996.
[3] Ultimately it would be Lotus' characteristic literal rule interpretation that would end the works involvement on the Esprit's racing career.
During 1996 the FIA GT rules concerning homologation requirements were changed in an attempt to alter the emphasis of the series from sports to racing cars.