Lotus is planning an end to production of its sportscars in the UK, in a move that would put 1,300 jobs at risk and represent a major blow to the British car industry.
The carmaker’s Chinese owner, Geely, is looking at options including manufacturing its Emira sportscar in the US, and stopping production at its plant in Hethel, Norfolk, permanently, according to a person with knowledge of the company’s thinking.
However, no final decision has been made. Workers at the factory have not been informed of the plans.
The Norfolk factory has not built any cars since mid-May. The company said in a statement that it had paused production to manage inventories and supply chain issues caused by the US’s extra 25% tariffs on car imports.
The factory closure could come as soon as next year, according to the Financial Times, which first reported it.
Lotus was founded by car engineer Colin Chapman in 1948, and gained a reputation for lightweight British sportscars. However, it was taken over in 2017 by Geely, which is owned by the billionaire Li Shufu. Geely has stakes in a wide range of car companies, ranging from the UK’s Aston Martin to Germany’s Mercedes-Benz and Sweden’s Volvo. In China Geely makes vehicles under its own name, as well as under the Lynk & Co and Zeeker brands.
Since taking over Lotus, Geely has shifted its focus to China, where it makes its electric SUV, the Eletre. In 2023Geely listed the electric carmaking arm of the business, Lotus Technology, on the New York stock exchange.
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However, that listing left the original Lotus business in the UK standing alone without access to the same significant investment as the Chinese operations received.