Among the most famous British sports car companies, Lotus is considering stopping the production of cars at its famous long-time home in Hethel, Norfolk, the Financial Times reports. That kind of move would put 1300 jobs at risk in Hethel, where Lotus has operated since 1966. Sources within the company have also told the BBC that Lotus is considering moving production to the United States.
Lotus had already paused U.S. shipments of its Emira back in April amid tariff turmoil, and the company reportedly told the Financial Times it had paused all production from mid-May to “manage inventories amid supply chain issues related to US tariffs.”
Details are still scarce, particularly with regard to a potential U.S. move, but as a company, Lotus is no stranger to financial woes. It was in dire straits after the death of founder Colin Chapman in 1982, and it came under the ownership of General Motors in 1986, only for GM to sell it in 1993 to a holding company run by Italian businessman Romano Artioli. In 1996, it changed ownership again, passing to Malaysian carmaker Proton. Under Proton’s ownership, Lotus had something of a renaissance, with strong sales of its Elise in Europe and North America. Then, in 2017, it changed ownership yet again to Chinese multinational corporation Geely, which still owns Lotus as well as Volvo and Polestar.
Despite the well-received launch of the Emira in 2022, a lineup that also includes an electric SUV and the Evija hypercar, and the construction of a new Lotus factory in Wuhan, China, the numbers haven’t looked good for Lotus lately. For the April-to-June quarter, Lotus Technology reported an operating loss of $103M, and the company had already gone through a round of job cuts in April. Lotus Technology, the electric-vehicle division of the company, had an IPO last February, but the stock has fallen by 84% since then, according to the Financial Times.
The massive investment from Geely, which seemed like a lifeline for Lotus eight years ago, certainly doesn’t appear to be paying off. It’s frustrating for fans of Lotus, its rich history and Chapman’s “simplify, then add lightness” ethos, but we can at least hope that, somehow, things turn around for the company.
So the Chinese owned company wants to possibly move some production to the USA? How many vehicles do they sell here? It isn’t much, I rarely see a new one.
Obligatory,
L-ots
O-f
T-rouble
U-sually
S-erious
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