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Ride Radar > Blog > Tips & Advice > Why did Geely’s Lotus go so wrong?
Tips & Advice

Why did Geely’s Lotus go so wrong?

Last updated: July 2, 2025 5:35 am
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The Impact of Geely on Western Brands in the Automotive Industry

Geely’s foray into the Western market started off on a high note with its acquisition of Volvo. Over the years, Volvo has been transformed into a mainstream premium player under Geely’s ownership. However, the success story seems to have hit a roadblock with other Western brands under Geely’s control.

Polestar, despite producing quality cars, is facing significant financial losses. Volvo, on the other hand, is undergoing restructuring after becoming too bloated. The delayed launch and subsequent issues with the EX90 model have also tarnished Geely’s reputation in the Western market.

Geely’s acquisition of Lotus initially seemed promising, with the Chinese company stepping in to rescue the struggling British sports car manufacturer. Investments were made in Hethel and the development of the Emira, showcasing Geely’s commitment to preserving Lotus’s heritage.

However, the opening of a new design center in the Midlands signaled a shift away from Hethel as Lotus’s primary location. The announcement of new models that were predominantly Chinese-developed EVs raised concerns about the brand’s identity and heritage. Rushing these models to market for the anticipated demand for luxury electric SUVs and saloons has further undermined the core values of Lotus.

Geely’s extravagant spending on executive hires and lavish facilities, such as flagship stores in London and Amsterdam, has created a disconnect with the traditional image of Lotus. Coupled with missed sales targets for EVs, Geely’s management of Lotus has raised doubts about the brand’s future.

The recent news of discussions between the UK government, Geely, and Lotus regarding the future of Lotus’s Hethel plant has sent shockwaves through the automotive industry. While Geely insists on Lotus’s presence at Hethel, the outcome remains uncertain.

See also  Used Aston Martin Vantage 2018-2014 review

It is evident that Geely’s handling of Western brands in the automotive industry has been met with criticism and skepticism. The potential demise of Lotus’s iconic Hethel location serves as a cautionary tale for the consequences of mismanagement in the automotive sector.

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