Multiple outlets reported this weekend that Lotus considered (and may still be considering) shutting down production at the British assembly plant it has occupied since the mid-1960s and potentially relocating to the United States. The move comes in response to tariffs, which, despite the administration’s recent backpedaling, remain at 25% for the time being.
Per a report released in the UK last week, the country’s automotive exports to the United States are down approximately 50% so far this year. The new tariff rates won’t take effect until the end of June.
According to the BBC, Lotus was already exploring the move when the UK government intervened. The situation remains “under review” at Lotus, sources told the news network, but for the time being, it appears the company’s Hethel assembly facility will remain in operation.
It’s a sign of desperation for the small automaker whose only immediately available alternative would be to produce cars in China, where it has a second facility. The Wuhan plant comes courtesy of Lotus’s parent company, Geely. Lotus is currently under pressure not only to maintain the flow of exports to the United States—a market it considers critical—but to keep its newest offers compliant with U.S. regulations. The unlikely outcome of this would be a V8-powered Lotus Emira built in the United States.
There’s some pretty awesome historical precedent for overpowered British sports cars, but in this case, Lotus would likely source a biturbo engine and automatic transmission from Mercedes-Benz, rather than a thumping Detroit V8. We’re not sure what that does for the whole “simplify and add lightness” mantra espoused by the company’s long-departed founder, but let’s just say we’re open to the idea.
Lotus isn’t the only low-volume builder feeling the pinch. Ineos, which builds heritage-style Land Rover Defender knock-offs with modern amenities, has hiked prices this year in response to the ongoing trade war.
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Byron is a contributing writer and auto reviewer with a keen eye for infrastructure, sales and regulatory stories.
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