Lotus, a renowned sports car manufacturer owned by Geely, is facing a decision regarding the future of its UK production plant in Norfolk. Recent reports have indicated that the company is considering relocating its manufacturing operations to the United States due to the imposition of a 25% import tariff on cars exported from the UK to the US. This tariff has had a significant impact on Lotus’ production, leading to a halt in manufacturing activities when it came into effect in April.
In response to these reports, Lotus issued a statement affirming its commitment to the UK and highlighting the substantial investments it has made in its UK operations over the past six years. However, the company also acknowledged that it is exploring strategic options to enhance efficiency and competitiveness in a rapidly evolving market. One potential option being considered is the establishment of a new manufacturing plant in the US, in collaboration with a US partner with contract assembly capabilities.
The Financial Times has reported that Lotus has been in contact with the UK government, which has expressed willingness to provide support to keep the plant in Norfolk operational. The details of this support and the level of manufacturing capacity that Geely, Lotus’ parent company, would be willing to maintain in the UK remain unclear.
Geely acquired a 49.9% stake in Lotus in 2017 as part of its takeover of the previous parent company, Proton. The Chinese automotive giant also owns Volvo Cars, which operates a manufacturing facility in the US, specifically in South Carolina.
The future of Lotus’ UK production plant hangs in the balance as the company evaluates its options and navigates the challenges posed by trade tariffs and market dynamics. Stay tuned for further updates on this evolving situation.
