Lotus, the iconic British sports car manufacturer, is planning to end its UK-based sports car production and move manufacturing to the United States, a potential decision that could threaten around 1,300 jobs and deal a major blow to the UK automotive sector.
The company’s Chinese parent, Geely, is reportedly exploring plans to build its Emira model in the U.S. while permanently ceasing operations at its historic Hethel facility in Norfolk. Although no official confirmation has been provided, sources familiar with the matter suggest the decision is under serious consideration. Lotus has refrained from commenting on what it described as “rumours and speculation.”
If finalized, the shift is expected to draw strong criticism in Britain, especially as it would mark a major departure from the brand’s longstanding legacy of UK manufacturing. When Geely acquired a majority stake in Lotus in 2017, executives had committed to maintaining production in the UK, with one former leader stating in 2023 that “making cars in the UK was part of our DNA.”
The Hethel plant, originally a Second World War airfield, has been inactive since mid-May. The company attributed the pause in production to supply chain disruptions and a need to manage inventories following the U.S. government’s imposition of an additional 25% tariff on car imports. These trade measures have had a wider impact, contributing to the UK’s lowest car production figures since 1949 during the month of May. According to the Financial Times, which first broke the story, the factory could shut as early as next year.
Founded in 1948 by engineer Colin Chapman, Lotus has become known for its lightweight, high-performance British sports cars. Geely, controlled by billionaire Li Shufu, also owns stakes in several global automakers, including Aston Martin, Mercedes-Benz, Volvo, and the London Electric Vehicle Company, the producer of the iconic London black cab.
Under Geely’s ownership, Lotus has increasingly refocused on China, producing the electric SUV Eletre and launching Lotus Technology, its electric vehicle arm, which was listed on the New York Stock Exchange in 2023. Despite plans to scale production up to 150,000 vehicles annually by 2028, mainly from a facility in Wuhan, the original UK business has been left without access to comparable investment.
Although a recent trade agreement will reduce U.S. tariffs on UK cars to 10% starting Monday, Lotus Technology CEO Qingfeng Feng indicated the company is actively pursuing localized production options in the U.S. Speaking to investors on a recent call hosted by Alphasense, Feng noted: “We are discussing with our strategic partners in the U.S. on localization plans in order to avoid the influence of the U.S. tariff. We believe localization is a feasible plan.”
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