7:00 am, August 29, 2025
Lotus is to slash the workforce at its Norfolk car building plant with as many as 550 jobs set to be axed.
The sports car maker has outlined restructuring plans which could could see more than 40% of the factory’s 1,300 employees let go.
The firm has now launched a consultation process to determine exactly how many roles could be scrapped, with workers in engineering, manufacturing, and supporting services all said to be at risk.
The plant, based in Hethel, has served at Lotus’s HQ since 1966 and bosses say the latest decision has come as a result of a ‘rapidly evolving automotive environment’.
A spokesperson for the brand 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.
‘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.’
A trade deal between the UK and the US reduced tariffs on UK-made vehicles exported to America from 27.5% to 10% from June 30.
But it remains higher than the 2.5% levy on UK cars that was in place before Donald Trump’s ‘liberation day’ tariff announcements.
Lotus added that restructuring was ‘vital to enhancing our future competitiveness in the market’.
‘The brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus sports car, motorsports and engineering consulting operations,’ the company said.
‘It is actively exploring future growth opportunities to diversify Lotus Cars’ business model, including through third-party manufacturing.’
In June, Lotus said it had ‘no plans’ to close the factory following reports that Chinese owner Geely was proposing to shut its UK operations.
Reports had said the company was considering the closure in favour of a new plant in the US.
A spokesman for the Government’s Department for Business and Trade (DBT) said: ‘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.
‘This government inherited some of the highest industrial energy prices in the world, while businesses most impacted by global tariffs have faced increased pressures.’
The DBT added that it had ‘secured landmark trade deals, including our deal with the US that saved thousands of jobs in Britain’.
