Lotus will reduce its UK workforce by up to 550 roles, around 42% of 1,300 employees, citing falling sales and cash shortages. The company is owned by Geely and affirmed continued manufacturing at its Hethel, Norfolk plant, which paused production in mid-May to manage inventories and supply-chain issues tied to US tariffs. The US initially imposed a 27.5% tariff on British-made cars, later reduced to 10% for up to 100,000 vehicles under a government deal. Lotus said it plans to resume production in early September while restructuring to boost competitiveness and explore diversification and resource-sharing across the wider group.
The factory has not built any cars since mid-May, having paused production to manage inventories and supply chain issues caused by the US tariffs on car imports from countries including the UK. Trump initially slapped British-made cars with a 27.5% tariff, with the UK government later striking a deal that will see the levy cut to 10% for a maximum of 100,000 cars a year, close to total UK vehicle exports last year.
Following a review of Lotus Cars business objectives in line with the current market conditions, the company has announced a restructuring proposal, which anticipates a reduction of up to 550 roles across the business in the UK, Lotus said in a statement. We believe this is necessary in order to secure a sustainable future for the company in today's rapidly evolving automotive environment, which is seeing uncertainty with rapid changes in global policies including tariffs.
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