Lotus isn't closing its UK base, but is 'exploring options' to stay competitive

Headlines over the weekend suggested Lotus Cars’ UK HQ could be facing closures. We can confirm the carmaker has denied the rumours, saying "it’s business as usual".

Lotus told the Financial Times "it had paused production from mid-May to manage inventories amid supply chain issues related to US tariffs", but this doesn’t mean the Hethel factory – responsible for 1,300 jobs – is shutting down.

In a statement, Lotus Cars said: “The UK is the heart of the Lotus brand - home to our sports car manufacturing, global design centre, motorsport operations, and Lotus Engineering. It is also our largest commercial market in Europe.

"Lotus Cars is continuing normal operations, and there are no plans to close the factory. We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.” So fear not, more Lotusness is happening.

In fairness, it kinda has to. Strong sales haven't yet paid off the development costs for the Lotus Emira, or the fully electric Eletre and Emeya models.

Lotus Cars is owned by Geely – Volvo’s parent company – and it's been doing well, particularly in the US. In 2020, it sold just 94 cars in the States, but in the first nine months of 2024, Lotus Technology – its EV subsidiary – reported sales of 1,665. In a bid to mitigate the potential impact of its customers facing import duties, it's looking into how best to continue selling its motors.

The statement continued: "We have invested significantly in R&D and operations in the UK over the past six years. Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage." More as we get it.