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Lotus Considers Relocating UK Production to the US
British sports car manufacturer Lotus is reportedly evaluating the possibility of ceasing production at its long-standing facility in Hethel, Norfolk, in favor of establishing a new plant in the United States. According to BBC sources, such a move could jeopardize approximately
1,300 jobs at the company’s UK headquarters.
While Lotus declined to comment on the speculation—first reported by the Financial Times—internal sources confirmed that the proposal is under active review. The deliberation follows a recent suspension of production at Hethel, prompted by trade disruptions stemming from U.S. import tariffs.
The U.S. represents a critical market for Lotus, but the imposition of a 25% tariff on imported vehicles and components has significantly impacted its operations. Recent data indicates that UK car exports to the U.S. have plummeted by 50% as manufacturers, including Lotus, pause shipments in response to the financial strain.
Although the UK government and the Trump administration have negotiated a reduction in tariffs—from 25% to 10%—for British-made cars entering the U.S., the new rates will not take effect until late June. Until then, automakers continue to bear the burden of higher costs.
Lotus, majority-owned by China’s Geely Group, operates manufacturing facilities in Norfolk and Wuhan, China. Geely, which also controls Volvo, Polestar, and Lynk & Co., is currently streamlining its global automotive portfolio.
Founded in the 1950s by engineer Colin Chapman, Lotus relocated to Norfolk in the 1960s. The company recently announced 270 job cuts, citing "volatile and evolving market conditions, including U.S. tariffs." Despite these challenges, Lotus maintains that it remains "committed to the UK," describing the restructuring as "essential to bolstering competitiveness."
The Trump administration’s broader tariff strategy aims to incentivize domestic production by imposing higher levies on foreign goods. Prior to the recent UK-U.S. agreement, British car exports faced a potential 27.5% tariff. The revised 10% rate applies exclusively to the first 100,000 vehicles exported annually—a figure consistent with last year’s UK-U.S. trade volume.
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