Lotus poised to end UK sportscar production, putting 1,300 jobs at risk

Lotus is planning to end production of its sportscars in the UK and shift it to the US, 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 permanently stopping production at its factory in Hethel, Norfolk, according to a person with knowledge of the company’s thinking. However, no final decision has been made.

Workers at the factory, in a former second world war bomber facility, have not been informed of the plans. Lotus declined to comment on “rumours and speculation”.

If the company goes ahead with the plan it is likely to be heavily criticised in the UK, as it comes only eight years after Geely took majority control of the British company in 2017. A previous leader at the company said in 2023 that making cars in the UK is “part of our DNA”.

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. UK car production fell to its lowest level since 1949 in May in response to the tariffs.

The factory closure could come as soon as next year, according to the Financial Times, which first reported it.

Lotus was founded by in 1948 by the car engineer Colin Chapman and gained a reputation for lightweight British sportscars. Geely, which is owned by the billionaire Li Shufu, bought a majority stake in 2017. Geely has stakes in a wide range of car companies, 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.

Geely also owns the London Electric Vehicle Company, the maker of London black cabs.

Since taking over Lotus, Geely has shifted its focus to China, where it makes its electric SUV, the Eletre. In 2023 Geely listed the electric carmaking arm of the business, Lotus Technology, on the New York stock exchange.

Geely had planned to increase annual production to 150,000 by 2028, with the bulk of those cars made in Wuhan, China. However, the New York listing left the original Lotus business in the UK standing alone without access to the same significant investment as the Chinese operations received.

The US tariffs on cars are due to drop to 10% on Monday under a trade deal reached between the US and UK. However, Qingfeng Feng, chief executive of Lotus Technology, told investors this week that the company was looking at shifting production to the US.

“At this moment, we are discussing with our strategic partners in the US on localisation plans in order to avoid the influence of the US tariff,” he said, according to a transcript of the call hosted by the data company Alphasense. “With our strategic partners, we had an in-depth discussion around our US landscape and we believe localisation is a feasible plan.”