Job fears as Lotus plots UK closure of sports car plant
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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'.
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