Lotus Considers Shifting Production to US, Threatening 1,300 Jobs

Lotus Cars, the iconic British sports car manufacturer, is contemplating the cessation of its production operations in the United Kingdom, a move that could jeopardize approximately 1,300 jobs in Norfolk. The company's Chinese parent, Geely, is reportedly evaluating several options, including relocating the assembly of its Emira sports car to the United States. This decision, still pending, highlights significant challenges facing the British automotive industry.

In recent communications, Geely executives have acknowledged the difficulties posed by new tariffs imposed on car imports to the U.S., which have complicated Lotus's operational viability in the UK. According to Qingfeng Feng, Chief Executive of Lotus Technology, discussions with strategic partners in the U.S. are underway to develop localization plans that would mitigate the impact of these tariffs. "We believe localization is a feasible plan," Feng stated during a recent investor call, indicating a strategic pivot that could see Lotus's production capabilities shift entirely overseas.

Historically, Lotus was founded in 1948 by Colin Chapman and has been synonymous with lightweight, high-performance sports vehicles. However, since Geely acquired a controlling stake in the company in 2017, there have been growing concerns regarding the future of its UK manufacturing footprint. The Norfolk factory, which has not produced any vehicles since mid-May 2025, is located in a facility that served as a World War II bomber base, integral to the company’s heritage.

The potential closure comes at a time when the UK automotive sector is already facing significant challenges. According to the Society of Motor Manufacturers and Traders (SMMT), UK car production fell to its lowest level since 1949 in May 2025, reflecting broader trends exacerbated by geopolitical tensions and trade barriers. This decline is further influenced by the increased tariffs on car imports to the U.S., which rose to 25% under the current trade regulations, although these tariffs are set to decrease to 10% soon.

Industry experts such as Dr. Emily Carter, an automotive economist at the University of Warwick, express concerns about the long-term implications of such a move. "The shift of production overseas could significantly undermine the UK's stature in the global automotive market," she warns, noting that it may lead to a loss of skilled jobs and expertise in the region.

Critics of Geely's strategy argue that the company’s focus on the Chinese market is detracting from its commitment to British manufacturing. Dr. Sarah Johnson, a professor of business at Cambridge University, has pointed out that Geely’s prioritization of its electric vehicle ambitions in China signals a potential abandonment of the historical legacy of Lotus in the UK. "What we are witnessing is not just a business decision; it is a cultural shift that could erase decades of automotive history," she stated.

Geely's plans for Lotus include increasing production capacity and focusing on electric vehicle manufacturing, with a projected output of 150,000 vehicles annually by 2028. However, the decision to move production from the UK raises questions about the future of the Lotus brand and its commitment to its roots.

As the situation develops, stakeholders are closely monitoring the outcomes of Geely’s deliberations. The potential relocation of Lotus’s manufacturing operations could set a precedent for other automotive manufacturers contemplating similar moves, further reshaping the landscape of the UK automotive industry. The future of Lotus and its workforce hangs in the balance, as final decisions are expected to emerge in the coming months, with industry analysts urging the company to consider the broader implications of such a transition.