Sports car maker Lotus is set to sack nearly half its UK workforce, putting up to 550 jobs, it has confirmed.
The manufacturer blamed US President Donald Trump and his tariff hikes for the decision.
The company has launched a consultation process to determine how many roles out of the 1,300-strong workforce at the factory in Norfolk will be affected.
The shock move is said to be part of a major restructuring of the firm.
The UK headquarters, based in Hethel, has been the home of the sports car’s production since 1966 and retained under Chinese multinational Geely when it took a controlling stake in the business in 2017.
Under the proposals, roles across divisions including engineering, manufacturing, and supporting services will be affected.
A spokeswoman for the group 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.’
The Lotus factory in Hethel, Norfolk currently employs 1,300 staff
Lotus car showroom displaying the new fully electric vehicles in Mayfair earlier this year
The Lotus Evija electric hypercar in car showroom in Piccadilly
The company added that restructuring is ‘vital to enhancing our future competitiveness in the market’.
It said: ‘The brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus sports car, motorsports and engineering consulting operations.’
A trade deal between the UK and the US reduced tariffs on UK-made vehicles exported to America from 27.5 per cent to 10 per cent from June 30.
But it remains higher than the 2.5 per cent levy on UK cars that was in place before Mr Trump’s ‘liberation day’ tariff announcements.
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.
It comes after business Secretary Jonathan Reynolds met with Lotus officials in June, reportedly saying the Government was prepared to offer Lotus support to protect UK jobs.
The firm insisted at the time that ‘the UK is the heart of the Lotus brand’ and that ‘there are no plans to close’ its Hethel plant in Norfolk.
Lotus is one of the manufacturers (along with JLR and Rolls-Royce) that ceased shipments to the US following the introduction of tariffs on cars imported to the States in April.
While the US is a significant market for the lightweight sports car brand, it has since confirmed that the UK is its ‘largest commercial market in Europe’.
Lotus delivered 12,000 vehicles in 2024, a year-on-year increase of over 70 per cent, with the European market making up nearly 40 per cent of deliveries, and North America 21 per cent. China made up 25 per cent.
Lotus car showroom displaying the new Lotus Emira vehicle in Mayfair, described by Autocar as one of the ‘all-time British sports car greats’
Employees polish an Lotus Evora sports car as it moves down the inspection line at the automobile factory in Hethel
South Norfolk Council said it is ready to support workers who lose their jobs at the factory.
Council leader Daniel Elmer told The Sun: ‘I am disappointed to hear the news from Lotus today.
‘Lotus has been an integral part of South Norfolk since 1966 and we have worked with the company over many years supporting its plans for growth, and we will continue that support.
‘The global situation is very difficult for car manufacturers, especially following the implementation of American tariffs, and we must now hear from the government about what they are planning to do to protect jobs and support our manufacturing businesses.’
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’.
