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Lotus Announces UK Job Reductions Amidst US Tariffs and Market Shifts
British sports car manufacturer Lotus has announced plans to reduce its workforce by up to 270 positions in the UK. This decision comes as the company cites challenges from newly imposed US automotive tariffs and evolving consumer preferences in the sports car market. The job losses will primarily affect Lotus’ sports car factory located in Hethel, Norfolk.
Restructuring Impacts Hethel Factory
The proposed restructuring will focus on the Hethel, Norfolk facility, which is the primary production site for Lotus sports cars and houses its renowned FIA-approved test track. This track was established by Lotus founders Colin and Hazel Chapman in 1966.
Lotus has clarified that other UK sites, including the Lotus Advanced Structures factory, the Lotus Advanced Technology R&D center in Warwick, and its London commercial headquarters, will not be impacted by this current restructuring phase. This is according to sources at This is Money.
Tariffs and Market Volatility
Lotus, now under the ownership of Chinese automotive giant Geely (which also owns Volvo and Polestar), has seen its UK-manufactured sports cars become subject to a 25% US tariff. In response to these tariffs, the Norwich-based automaker has暂停 (stopped) shipments of its Emira sports car to the United States.
Despite the current challenges, Lotus emphasized its dedication to the UK, stating it will seek to ‘increase synergies’ within the Geely group while maintaining its core operations in Britain.
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Lotus anticipates up to 270 job losses across its UK operations as part of a strategic business restructure. The company cites ‘unstable and changing market conditions including US tariffs and evolving consumer demand for sports cars’ as key factors.
Second Job Reduction Announcement in Six Months
This proposed workforce reduction follows a prior announcement just six months ago, where Lotus indicated up to 200 job losses due to ‘market demand and evolving market conditions’.
In its statement to This is Money, Lotus Cars stated: ‘Lotus Cars has announced a proposed business restructure to ensure viable operations, amid unstable and changing market conditions including the US tariffs and shifting consumer demand for sports cars.’
The company elaborated, stating its plans to ‘increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group. This will involve exploring greater resource sharing and collaboration in technology, engineering, and operations.’
Lotus further explained: ‘We anticipate up to 270 positions being affected across Lotus Cars in the UK. This proposed restructure is essential to improve our competitiveness in today’s market.’
The company concluded by reaffirming its commitment to the UK: ‘We remain dedicated to the UK, the home of the Lotus brand, where we conduct our sports car manufacturing and global design center, and which remains a key commercial market for the brand.’
Current Lotus UK Production
Lotus’s current UK production line includes models such as the new Emira coupe, the Emeya Hyper-GT EV, and the Electre Hyper SUV EV.
The company, employing approximately 1,200 individuals, operates as a low-volume manufacturer, specializing in lightweight performance vehicles known for delivering exhilarating driving experiences.
Lotus’s headquarters in Norfolk, the location of the proposed 270 job reductions, houses its 2.2-mile racetrack. This track is used for testing new Lotus vehicles and has been used by legendary F1 drivers like Senna.
Previous Tariff Challenges
This is not the first time Lotus has encountered tariff-related issues. Last year, Lotus Technology, the Wuhan-based division responsible for manufacturing the Emeya and Eletre in China, was forced to double the price of the Eletre to $220,000 to maintain profitability. This price adjustment was a direct consequence of the US imposing 100% import duties on electric vehicles manufactured in China.
As of April 10th, these import tariffs have further escalated to 145 percent, representing the highest tariffs imposed on any nation. This is a reduction from an initial rate of 185 percent, after President Trump acknowledged ‘transition problems’ and ‘difficulty’ amid ongoing global trade tensions and market declines.
Lotus’s Resilience
As Lotus navigates the dual challenges of fluctuating global demand for sports cars and significant tariff pressures, it is important to recall the company’s history of overcoming financial hardships. Lotus has a known history of rebounding from multiple periods of financial difficulty throughout its history.
This current situation may represent the latest challenge for the Hethel-based manufacturer to overcome in its eight-decade history.