Lotus has moved to cut some 550 jobs from its UK Headquarters in Hethel in a move the automaker describes as bringing the company’s business objectives “in line with the current market conditions”. The automaker has been housed at the Hethel facility since 1966, where these cuts representing 40 percent of the plant’s workforce.
According to Automotive News Europe, the decision comes as the result of “rapid changes in global policies including tariffs” that have birthed instability in the industry around the globe. That includes American policy changes over the course of the past year. Under President Trump, tariffs on U.K.-built vehicles have climbed to 15 percent, up from just 2.5 percent under the previous administration. And while Hethel itself is home to the Emira, Geely-owned Lotus builds its Electre SUV and Emeya sedan at a production facility in Wuhan, China. That means these vital (and expensive to develop) EVs are effectively barred from the ever-important U.S. market due to restrictions on Chinese-built EVs. Lotus previously announced plans to back away from an all-electric lineup, with plans for a hybridized sports car for 2026.
In June, Lotus had recommitted itself to the UK, but did note that it was "actively exploring options in the global market". That statement came after reports suggested the automaker was considering a move to the U.S. in an effort to skirt tariffs. That said, the automaker has now suggested that it may look at other possibilities to help shore up the business, including third-party manufacturing. The brand is no stranger to this strategy here in the States, having provided rolling chassis to Tesla for the first-generation Roadster.
Lotus plans to release its Q2 financial reports on August 29, which may help to paint a clearer picture of the automaker’s current standings. Hopefully, better times come back to the storied sports car manufacturer soon.
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