Lotus, the Chinese-owned sportscar maker, has confirmed it will cut 550 jobs in the UK, representing 42% of its 1,300-strong workforce, as part of wider restructuring plans. The company cited a drop in sales, cash shortages, and uncertainty from global trade policies, including US tariffs imposed by Donald Trump.
The company, owned by Chinese automotive group Geely, said the cuts were necessary to 'secure a sustainable future' in a rapidly evolving automotive environment. Lotus insisted it remains committed to the UK and will continue manufacturing at its plant in Hethel, Norfolk, where production is set to restart in early September after a pause since mid-May.
The factory halted production to manage inventories and supply chain issues caused by US tariffs on car imports from the UK. Trump initially imposed a 27.5% tariff on British-made cars, later reduced to 10% for up to 100,000 cars annually under a UK-US deal. Lotus stated it is exploring resource sharing across the Geely group and third-party manufacturing to diversify its business.
Geely took majority control of Lotus in 2017. The British company, founded in 1948 by Colin Chapman, has a reputation for lightweight sportscars. Geely also owns the London Electric Vehicle Company and has stakes in Aston Martin, Mercedes-Benz, and Volvo.
