The iconic British sports car brand, Lotus, which once defined light-weight race cars and subsequently sports cars, under the watchful eye of the great Colin Chapman, is once again at the crossroads. Multiple recent reports, including one from the Financial Times, have indicated that Geely-owned brand is considering moving production of some of its models, including the Emira Sports Car, elsewhere; most likely to the United States. According to the BBC, sources inside the company have confirmed that the option is under active review, stating that actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.
At stake are 1,300 jobs and the legacy of the brand that has called Norfolk home since 1966. The primary reason for such a drastic step are the U.S. import tariffs, which were announced in April this year. Import duties soared to 25% following tariff increases announced in April 2025 under President Trump’s administration. For a brand that views the United States as one of its key markets, this led to a pause in production since May. While a new U.S.-U.K. trade deal has temporarily reduced tariffs to 10%, the announcement came too late to avoid damage.
Lotus CEO Feng Qinfeng stated during the earnings call earlier this month that localization is a possibility in the U.S. The most likely case could be that of Swedish automaker Volvo’s Ridgeville plant. Volvo, which is also owned by Geely, has an annual capacity of 150,000 vehicles at its South Carolina manufacturing facility. Despite these rumors, Lotus insists that it is not abandoning the U.K., and operations at its Hethel plant will continue as normal. In a statement to the BBC, the company stated that it has invested significantly in R&D and operations in the United Kingdom and remains committed to its British Heritage.
Having said that, commitment and practicality are two different entities. The market for all-electric models like the China-made Electre SUV and Emeya sedan has waned, and Lotus posted a $183 million loss in the first Quarter of 2025. In the recent wake of the aforementioned tariffs, exports to the United States, once its third-largest market, have since collapsed, along with the suspension of the deliveries of the Eletre.
While the company has invested £100 million ($136.93 million) over the past few years, including a new facility that opened in 2022, Hethal’s future looks uncertain. The U.K. government is reportedly scrambling to offer support, and according to the Financial Times, the company's Business Secretary, Jonathan Reynolds, is expected to meet with Lotus executives to discuss more on this evolving situation.
With the market for EVs cooling off and the U.S. emerging as a final stronghold for combustion-engine cars, the writing may be on the wall. If Lotus decides to move some production stateside, it would be a strategic move that is about the brand’s survival rather than anything else.
Source: Financial Times, BBC
