Iconic British sports car manufacturer Lotus has announced a restructuring plan that could lead to the loss of up to 550 jobs - more than 40% of the company’s UK workforce.
Lotus said the restructuring was necessary to ensure a sustainable future for the business in an ever-changing automotive landscape, marked by uncertainty over rapidly evolving global policies, particularly in relation to tariffs.”
British car manufacturers have faced significant challenges due to tariffs introduced by former US President Donald Trump in April, with a view to bringing more manufacturing back to the United States.
While an agreement between the UK and US was reached in late June, lowering tariffs on British-made vehicles from 27.5% to 10% for the first 100,000 cars exported annually, the new rate remains significantly higher than pre-tariff levels.
Lotus Cars, a subsidiary of Chinese automotive giant Geely, operates multiple sites in the UK, including its main factory in Hethel, Norfolk. The company employs 1,300 people in the country, while another Lotus plant in Wuhan, China, operates under direct ownership of its parent company.
Despite the planned job cuts, Lotus affirmed its commitment to remaining in the UK, stating, “Norfolk will remain the headquarters for Lotus sports cars, motorsport, and engineering consultancy.”
In June, the company had reassured the public that it had “no plans” to close its Norfolk factory. However, according to *The Financial Times*, the group is exploring the possibility of manufacturing vehicles in the US in response to the elevated tariffs.
Lotus, listed on the New York Stock Exchange, is set to release its half-year financial results on Friday. In the first quarter, the company reported a reduced loss—down by a third—thanks to lower operational costs.
