Sports car maker Lotus plans to cut up to 550 jobs at its Norfolk factory, affecting around 40% of the site's 1,300-strong workforce. The company has launched a consultation process to determine the final number of redundancies across engineering, manufacturing and supporting services.
The restructuring comes amid uncertainty over Donald Trump's tariff policies, which have created significant challenges for the automotive sector. A spokeswoman for Lotus said: "The proposal is designed to enable Lotus Cars to operate with a flexible and agile business model, allowing it to ramp operations and resources in line with demand, as and when needed."
Tariff pressures mount
A UK-US trade deal reduced tariffs on British-made vehicles from 27.5% to 10% from June, but this remains significantly higher than the 2.5% levy that existed before Trump's tariff announcements. The company said restructuring was "vital to enhancing our future competitiveness in the market" in today's rapidly evolving automotive environment.
Lotus stressed its commitment to remaining in the UK, with Norfolk continuing as the home of sports car production, motorsports and engineering operations. The Hethel headquarters has housed the iconic British brand since 1966, when it moved from its original 1950s base under founder Colin Chapman.
Factory future secured
The announcement comes after Lotus denied closure rumours in June, when reports suggested Chinese owner Geely was considering shutting UK operations in favour of a US plant. The company said it had "no plans" to close the factory and is now actively exploring growth opportunities including third-party manufacturing.
A Government spokesman acknowledged the challenges facing carmakers, saying: "We recognise carmakers such as Lotus have been facing significant long-term challenges and we know this announcement will be concerning for workers and their families." The Department for Business and Trade highlighted its secured trade deals, including the US agreement that "saved thousands of jobs in Britain".
Sources used: "PA Media", "Independent", "BBC", "Sky News", "Evening Standard"
Note: This article has been edited with the help of Artificial Intelligence.
