The Hethel factory has not produced cars since mid-May. Production was paused to manage supply chain problems and inventories because of the US tariffs.Lotus will cut 550 jobs in the UK, almost 42 per cent of its 1,300 workers. The company said the cuts are needed because of falling sales, money shortages, and global uncertainty, including Donald Trump’s tariffs on UK cars, as per reports.
The job losses will happen across the business, but most will hit the Hethel, Norfolk site, where the main factory and HQ are based. Lotus also has an engineering office in Wellesbourne, Warwickshire that will be affected. A consultation process has started. People who lose jobs will be able to apply for other Lotus roles, as stated by Sky News.
Lotus production pause and Trump tariffs
The Hethel factory has not produced cars since mid-May. Production was paused to manage supply chain problems and inventories because of the US tariffs. Donald Trump put a 27.5 per cent tariff on British cars. The UK government later made a deal, cutting it to 10 per cent for up to 100,000 UK cars a year, which is close to the UK’s total car exports, as per The Guardian report.
Lotus said production is expected to start again in early September. The company released a statement saying the restructuring and job cuts are needed for a “sustainable future” in today’s fast-changing car market, which faces tariff and policy changes worldwide.
Lotus restructuring and Geely support
Lotus wants to make its business more flexible and agile, so it can adjust staff and operations depending on demand. The company also plans to share more resources across the global Lotus group and increase collaboration within Geely’s network. Lotus said it is looking at future growth opportunities, including third-party manufacturing, meaning it could also build cars for other brands, as per the reports.
In 2025, Lotus Technology is set to acquire 100 per cent equity in Lotus UK, bringing all Lotus operations under one structure. The company stressed it is still fully committed to the UK. Norfolk will stay the base for sports cars, motorsports, and engineering consulting operations.
Lotus was founded in 1948 by Colin Chapman, gaining fame for its lightweight British sportscars. The company has been owned by Geely since 2017. Geely also owns the London Electric Vehicle Company (maker of black cabs) and has stakes in Volvo, Aston Martin, and Mercedes-Benz. Geely, controlled by billionaire Li Shufu, also makes cars in China under brands like Lynk & Co and Zeekr, along with Geely-branded vehicles, as per the report by The Guardian.
