Lotus Faces UK Factory Closure,Production Shift to US – 1,300 Jobs at Risk
Hethel,Norfolk – Iconic British sports car manufacturer Lotus is reportedly planning to halt production at its UK factory,potentially jeopardizing 1,300 jobs and delivering a important blow to the british automotive industry. The move,driven by Chinese owner Geely,centers on shifting manufacturing of the Emira sports car to the United States [[source]].
While no final decision has been made, the potential closure of the Hethel facility – a former WWII bomber base – comes just eight years after geely acquired a majority stake in Lotus in 2017. This contrasts with previous statements emphasizing the importance of UK-based production to the brand’s identity [[source]].
The immediate catalyst appears to be the impact of a 25% US tariff on car imports,which has already forced a production pause as mid-May due to supply chain disruptions. This coincides with a broader decline in UK car production, hitting its lowest level since 1949 [[source]].
Geely’s Strategic Shift to China
This potential shift reflects Geely’s increasing focus on its Chinese operations. Geely, a sprawling automotive conglomerate with holdings in Aston Martin, Mercedes-Benz, and volvo, has been heavily investing in its Chinese-made electric SUV, the Eletre. The listing of Lotus technology on the New York Stock Exchange in 2023 seemingly left the original UK Lotus business without the same level of investment [[source]]. Geely aims to reach an annual production of 150,000 vehicles by 2028, primarily manufactured in Wuhan, China.
Lotus’s History & Geely’s Portfolio
Founded in 1948 by Colin Chapman, Lotus built its reputation on lightweight, high-performance British sports cars. Geely’s ownership extends beyond Lotus,encompassing the London Electric Vehicle Company (makers of the iconic black cabs) and various other automotive brands in China,including Lynk & Co and Zeeker
