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Caterham Cars had been a major Lotus 7 dealer during the 1960s, and its founder, Graham Nearn, purchased the rights to continue manufacture of the Seven design from Chapman in 1973, after Lotus announced its intention to discontinue the model. Caterham initially restarted manufacture of the Lotus Seven Series 4; however, when this proved unpopular, production switched to a Series 3 model in 1974.