Lotus Reverses UK Plant Closure Plans After Government Support

Lotus, the British sports car manufacturer owned by Chinese company Geely, has reversed its plans to end production at its Hethel, Norfolk plant after the UK government indicated it was willing to offer support to the struggling company. The automaker had paused production in mid-May due to supply chain issues and US tariffs, which have severely impacted its US exports and profitability, with the company reporting significant operating losses and job cuts. Lotus’s management in China is considering shifting production to the US, potentially utilizing Volvo’s underused plant in South Carolina, as a strategy to avoid tariffs and improve competitiveness. Despite launching new models like the Emira and working on electrified vehicles, including plug-in hybrids and a planned electric sports car, demand has been lower than expected, prompting the company to delay or reconsider new model launches. The US remains a crucial market for Lotus, but tariffs imposed under President Donald Trump’s administration have pressured the company to rethink its manufacturing footprint, with the UK government striving to support advanced manufacturing and car production amid these challenges. The future of Lotus’s UK operations remains uncertain, but there is ongoing dialogue between the company and the UK government to explore strategic options.