Sportscar maker Lotus has confirmed it will cut 550 jobs in the UK as part of wider restructuring plans that will deliver a fresh blow to Britain’s automotive industry.
Lotus, which has been struggling with a drop in sales and cash shortages, said it was necessary to slash 42% of its 1,300-strong UK workforce to “secure a sustainable future”, amid uncertainty sparked by factors including Donald Trump’s trade war.
The company, which is owned by the Chinese automotive group Geely, insisted that it was committed to the UK and would continue manufacturing vehicles at its plant in Hethel, Norfolk.
The factory has not built any cars since mid-May, having paused production to manage inventories and supply chain issues caused by the US tariffs on car imports from countries including the UK.
Trump initially slapped British-made cars with a 27.5% tariff, with the UK government later striking a deal that will see the levy cut to 10% for a maximum of 100,000 cars a year, close to total UK vehicle exports last year. A spokesperson for Lotus said on Thursday that production was due to start again in early September.
“Following a review of Lotus Cars business objectives in line with the current market conditions, the company has announced a restructuring proposal, which anticipates a reduction of up to 550 roles across the business in the UK,” Lotus said in a statement.
“We believe this is necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment, which is seeing uncertainty with rapid changes in global policies including tariffs.”
Lotus said it was looking at how it could share more resources across the wider group and that the restructuring plans were “vital” to boosting competitiveness. It added that it was “fully committed to the UK”.
“Norfolk will remain the home of the Lotus sportscar, motorsports and engineering consulting operations,” Lotus said, adding that it was also looking at how to diversify its business, including through third-party manufacturing, meaning it could build cars for other brands.
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The announcement comes eight years after Geely – which also owns the London Electric Vehicle Company, the maker of London black cabs – took majority control of the British company in 2017.
Lotus can trace its roots back to 1948, when it was founded by the car engineer Colin Chapman before gaining a reputation as a leader in lightweight British sportscars.
Geely, which is owned by the billionaire Li Shufu, has stakes in a wide range of car companies, from the UK’s Aston Martin to Germany’s Mercedes-Benz and Sweden’s Volvo. In China, Geely makes vehicles under its own name, as well as under the Lynk & Co and Zeekr brands.