Latest news with #Lotus
Daily Mail
8 hours ago
- Automotive
- Daily Mail
Job fears as Lotus plots UK closure of sports car plant
Lotus is reportedly planning to end production of its sports cars in the UK, putting 1,300 jobs at its Norfolk plant at risk. In another bruising setback for Britain's auto industry, the group is considering moving the manufacturing of its Emira model from its factory in Hethel to the US. The company, which is owned by Chinese car-maker Geely, could permanently stop production at the site as soon as next year, according to the Financial Times. Meanwhile, figures published yesterday showed UK car production last month slumped to its lowest level since 1949. Britain's high-end car-makers have been battered by Donald Trump's 25 per cent tariffs on the industry – though a trade deal reducing this to 10 per cent is expected to come into force on Monday. No final decision has been made over the future of the Hethel plant, which was opened in 1966 and received a £100m upgrade in 2022. Workers at the site have not been told anything about a potential closure. A Lotus spokesman said: 'This is a rumour. We don't comment on speculation.' The car-maker paused its production in mid-May in order to manage its stock levels due to Trump's tariffs. But it is expected to begin making cars again in Norfolk within four weeks. British car engineer Colin Chapman founded Lotus in 1948, and it was ultimately taken over in 2017 by Geely – owned by the billionaire Li Shufu. The closure will be another industry setback after Vauxhall owner Stellantis closed its Luton van factory, employing 1,100 workers, earlier this year. Major car-makers such as Honda – which shut its plant in Swindon in 2021 after 36 years of production – have exited the UK. Ford also closed its Bridgend engine plant in September 2020, and a Southampton van plant earlier in July 2013. Car production declined by 31.5 per cent last month, according to the Society of Motor Manufacturers and Traders (SMMT). The likes of Aston Martin and Jaguar Land Rover have had to halt shipments to the US following Trump's tariffs. SMMT chief executive Mike Hawes said 2025 had 'proved to be an incredibly challenging year for UK automotive production'.
Scottish Sun
8 hours ago
- Automotive
- Scottish Sun
Iconic British carmaker Lotus ‘threatens to close UK factory and set up new plant in US' with 1,300 jobs at risk
Lotus may be axing production at its headquarters in Hethel, Norfolk DRIVEN AWAY Iconic British carmaker Lotus 'threatens to close UK factory and set up new plant in US' with 1,300 jobs at risk Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) ICONIC British sportscar manufacturer Lotus threatening to close a UK factory and set up in the US. The carmaker may be axing production at its headquarters in Hethel, Norfolk, and heading to the United States, as reported by the BBC. Sign up for Scottish Sun newsletter Sign up 4 1,300 jobs could be at risk if plans were to go ahead Credit: Getty 4 The brand promised it was "committed to the UK" despite recent cuts Credit: Getty 4 Lotus blamed the "volatility" caused by Donald Trump's trade tariffs for the cuts Credit: Getty The firm has declined to make any official statement on potential plans. But, sources claimed moving production to the US was being discussed. This would put 1,300 jobs at risk if plans were to go ahead. It emerges after production in Hethel was temporarily suspended due to the tariffs on cars being imported to the US. The hikes meant business with the States was at risk, with American sellers required to pay taxes of 25% on imports of cars and car parts. In fact, exports to the US have halved since Trump's tariffs were introduced, figures revealed. This comes after the firm warned it is being forced to make more cuts, after scrapping hundreds of jobs. Lotus again blamed the "volatility" caused by Donald Trump's trade tariffs for the cuts. The luxury sports car company announced the cuts despite the fact it has almost doubled sales over the last year. The motorcar firm recorded 12,134 sales in the 2024 financial year, a 74% increase on the 6970 sales made the previous year. The modern classic Lotus Elise However, Lotus made just £21.7m in gross profit, a significant decrease on the £76.3 million it made the previous year. Chief financial officer Daxue Wang blamed the decrease in profits on the impact of worldwide tariffs and "global trade uncertainties." He added that Lotus, which will become one company when the sports car division merges with the Chinese electric car division, will be forced to undergo "strategic cost optimisation to improve profitability." 'As we progress with the acquisition of Lotus UK, we are committed to driving cost streamlining and operational enhancements across all markets to continuously deliver long-term value,' Mr Wang said. The beginning of these cost-cutting measures was announced last month, when the manufacturer announced that it would be cutting 270 jobs. The brand promised it was "committed to the UK" despite the cuts, but this has done little to ease fears. A spokesperson said: "The proposed restructuring is vital to enhance our competitiveness in today's market. "Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars. "The company plans to increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group. "It will look at greater resource sharing and collaboration in technology, engineering, and operations." Days after the job cuts were announced, Lotus' current owner Geely International, triggered a 2023 agreement to force Lotus Technology Inc to buy back 51 per cent of Lotus Advanced Technologies. Currently Geely owns 51 per cent of Lotus, with the other 49 percent owned by Malaysian group Etika Automotive. Qingfeng Feng, Senior Vice President of Geely Holding Group and CEO of Group Lotus, said: "This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand. "It will strengthen brand equity and enhance our operational flexibility and internal synergies. "We are confident that the transaction will create substantial long-term value for our shareholders." Donald Trump's introduction of 25 percent tariffs on car imports to the US has heaped huge pressure on car brands. The UK sends one sixth of all of the cars it builds each year to the US. These include luxe models from car brands such as Aston Martin, Rolls Royce and Land Rover. Sales to the US amount to about 100,000 a year, with a worth of around £8 billion. Trump has claimed that the import tax for cars, which came into play on April 2, would lead to "tremendous growth" for the industry. However, experts say it will likely lead to a temporary shutdown of significant production in the US and strain relations with other countries. 4 Iconic British sportscar manufacturer Lotus is threatening to close a UK factory and set up in the US Credit: Alamy More to follow... For the latest news on this story keep checking back at The Sun Online is your go-to destination for the best celebrity news, real-life stories, jaw-dropping pictures and must-see video. Like us on Facebook at and follow us from our main Twitter account at @TheSun.
The Irish Sun
8 hours ago
- Automotive
- The Irish Sun
Iconic British carmaker Lotus ‘threatens to close UK factory and set up new plant in US' with 1,300 jobs at risk
ICONIC British sportscar manufacturer Lotus threatening to close a UK factory and set up in the US. The carmaker may be axing production at its headquarters in Hethel, Norfolk, and heading to the United States, as reported by the Advertisement 4 1,300 jobs could be at risk if plans were to go ahead Credit: Getty 4 The brand promised it was "committed to the UK" despite recent cuts Credit: Getty 4 Lotus blamed the "volatility" caused by Donald Trump's trade tariffs for the cuts Credit: Getty The firm has declined to make any official statement on potential plans. But, sources claimed moving production to the US was being discussed. This would put 1,300 jobs at risk if plans were to go ahead. It emerges after production in Hethel was temporarily suspended due to the tariffs on cars being imported to the US. Advertisement Read More The hikes meant business with the States was at risk, with American sellers required to pay taxes of 25% on imports of cars and car parts. In fact, exports to the US have halved since Trump's tariffs were introduced, figures revealed. This comes after the firm warned it is being forced to make more cuts, Lotus again blamed the "volatility" caused by Donald Trump's trade tariffs for the cuts. Advertisement Most read in Motors The luxury The motorcar firm recorded 12,134 sales in the 2024 financial year, a 74% increase on the 6970 sales made the previous year. The modern classic Lotus Elise However, Lotus made just £21.7m in gross profit, a significant decrease on the £76.3 million it made the previous year. Chief financial officer Daxue Wang blamed the decrease in profits on the impact of worldwide tariffs and "global trade uncertainties." Advertisement He added that Lotus, which will 'As we progress with the acquisition of Lotus UK, we are committed to driving cost streamlining and operational enhancements across all markets to continuously deliver long-term value,' Mr Wang said. The beginning of these cost-cutting measures was announced last month, when the manufacturer announced that it would be cutting 270 jobs. The brand promised it was "committed to the UK" despite the cuts, but this has done little to ease fears. Advertisement A spokesperson said: "The proposed restructuring is vital to enhance our competitiveness in today's market. "Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars. "The company plans to increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group. "It will look at greater resource sharing and collaboration in technology, engineering, and operations." Advertisement Days after the job cuts were announced, Lotus' current owner Geely International, triggered a 2023 agreement to force Lotus Technology Inc to buy back 51 per cent of Lotus Advanced Technologies. Currently Geely owns 51 per cent of Lotus, with the other 49 percent owned by Malaysian group Etika Automotive. Qingfeng Feng, Senior Vice President of Geely Holding Group and CEO of Group Lotus, said: "This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand. "It will strengthen brand equity and enhance our operational flexibility and internal synergies. Advertisement "We are confident that the transaction will create substantial long-term value for our shareholders." Donald Trump's introduction of 25 percent tariffs on car imports to the US has heaped huge pressure on car brands. The UK sends one sixth of all of the cars it builds each year to the US. These include luxe models from car brands such as Aston Martin, Rolls Royce and Land Rover. Advertisement Sales to the US amount to about 100,000 a year, with a worth of around £8 billion. Trump has claimed that the import tax for cars, which came into play on April 2, would lead to "tremendous growth" for the industry. However, experts say it will likely lead to a temporary shutdown of significant production in the US and strain relations with other countries. 4 Iconic British sportscar manufacturer Lotus is threatening to close a UK factory and set up in the US Credit: Alamy Advertisement More to follow... For the latest news on this story keep checking back at The Sun Online is your go-to destination for the best celebrity news, real-life stories, jaw-dropping pictures and must-see video. Like us on Facebook at
Yahoo
8 hours ago
- Automotive
- Yahoo
Lotus considering shifting UK production to US
Sportscar maker Lotus is considering ending production at its home in the UK in favour of setting up a new plant in the US, the BBC understands. Such a move would put 1,300 jobs at risk at its headquarters in Hethel, Norfolk. Lotus refused to comment when asked about any plans, which were first reported by the Financial Times, but sources within the company told the BBC the situation is under review and taking production to the US was under consideration. It comes after production in Hethel was temporarily suspended due to disruption caused by the introduction of tariffs on cars being imported to the US. America is a major market for Lotus but tariffs threaten its business, with US sellers required to pay taxes of 25% on imports of cars and car parts. Figures released on Friday for the UK's car industry revealed exports to the US had halved as President Donald Trump's tariffs caused some car makers to halt shipments. The UK government and Trump administration have agreed a deal to lower tariffs on UK-made cars entering the US to 10%, but it is not due to come into force until the end of June, meaning manufacturers have had to pay the higher rate to date. Lotus is majority owned by the Chinese group Geely, which is in the process of reorganising its diverse portfolio of car brands, which also include Volvo, Polestar and Lynk and Co. The company currently builds cars in Norfolk and in Wuhan, China. Lotus was founded in the early 1950s by engineer Colin Chapman, moving to Norfolk in the 1960s. In April, the carmaker announced 270 jobs would be cut "amid volatile and evolving market conditions including the US tariffs". The decision followed previous job losses last year, but the company said it remained "committed to the UK" and that the restructuring was "vital to enhance our competitiveness". President Trump has raised taxes on various goods entering the US in recent months in an attempt to encourage businesses and consumers to buy more American-made goods. Car shipments to the US already incurred a 2.5% tariff, but now face higher rates. However, if a deal with the US had not been reached, UK exports would have been taxed at 27.5%, as opposed to 10%. The lower tariff only applies to 100,000 British cars being imported to the US per year, which matches the number of vehicles the UK exported across the Atlantic last year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Automotive
- Yahoo
Lotus's UK factory threatened with closure by Chinese owner
The Chinese owner of Lotus is threatening to close the sports car maker's historic British factory after nearly 60 years of production. Geely, which has owned a controlling stake in the marque since 2017, is understood to be considering shutting the plant in Hethel, Norfolk, as it simultaneously eyes a new site in the US. It would mean the loss of 1,300 local jobs and deal a fresh blow to British carmaking following similar closures by Vauxhall owner Stellantis, Ford and Honda in recent years. The threat has echoes of the attempt by China-based Jingye Group to close the blast furnaces at British Steel's plant in Scunthorpe earlier this year, a move that prompted the Government to swoop in and take control of the business. On Friday evening, a spokesman for Lotus declined to comment on 'rumours and speculation'. The company is understood not to have made a final decision. However, the closure plans are under active discussion and production could end permanently as soon as next year, according to the Financial Times, which first reported the story. Production at Hethel has already been on hold since mid-May following Donald Trump's decision to impose tariffs on foreign cars shipped to the US. Lotus said the decision had been taken to manage inventory and supply chain issues caused by the 27.5pc tariffs on British vehicles. A spokesman insisted this was temporary, adding: 'Production will restart in the next four weeks.' However, it is understood that the longer-term future of the plant remains uncertain. That is despite Geely having previously pumped £500m into a modern revamp of Hethel's production lines, aimed at boosting their capacity from 1,500 cars a year to more than 5,000. Other carmakers including Jaguar Land Rover and Aston Martin also paused shipments to the US temporarily amid fears that buyers, particularly those interested in luxury vehicles, would hold off from making purchases until the trade dispute was resolved. Most will have resumed from next week when a new UK-US trade deal comes into force, reducing tariffs on British cars to 10pc. Since its takeover by Geely, Lotus has pivoted towards making luxury 'lifestyle' cars including its Eletre electric SUV and the Emeya, an electric grand tourer. Both of these cars are made by Geely in Wuhan, China. At Hethel, the company makes the Emira sports car – the last traditional petrol vehicle the company will ever make – and small numbers of the Evija electric hypercar. More recently bosses have talked about launching a new plug-in hybrid model towards the end of this year after sales of its EVs did not 'tally with expectation'. The company has been based at Hethel for 59 years, in converted hangars that previously housed US air force bomber squadrons during the Second World War. Mike Johnstone, the former chief commercial officer who left in April last year after 18 months in the job, previously told The Telegraph that the company's 'heart and soul is in the UK'. However, Lotus listed on the New York stock market last year and Feng Qingfeng, the current chief executive, this week raised the prospect of opening up a factory in America to avoid Trump's tariffs. Speaking to analysts and investors on a call, Mr Qingfeng said: 'In the future, we are trying to leverage our US strategy to catch up the losses due to the tariff hike. '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. 'We believe that localisation is a feasible plan. We will continue to explore the US market with our [plug-in] and also [electric] products.' Revelations about the Hethel factory's potential closure emerged on Friday as figures separately showed that British car manufacturing had fallen to its lowest level since 1949. New car and van production dropped by 33pc in May to 49,810 vehicles, the Society of Motor Manufacturers and Traders said, as Trump's tariffs blitz prompted brands to freeze their lines and pause shipments. Excluding the coronavirus pandemic in 2020, when factories were forced to close entirely, this was the lowest level of output in 76 years. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
