News just in from the BBC saying that Sports car manufacturer Lotus will cut 550 jobs at its UK headquarters in Norfolk.
The company was founded in the early 1950s by engineer Colin Chapman and moved to Hethel in the 1960s.
Ben Goldsborough, Labour MP for South Norfolk, said it was “terrible news” and a “punch in the stomach” for the workers. “But the worst case scenario has been avoided which is a complete and utter closure of Lotus UK,” he said.
A spokesperson for the Department for Business and Trade, 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.”
They pointed out they had taken “decisive action” to reduce energy costs for businesses and secured “landmark trade deals” including with the US to save thousands of jobs. In a statement, it said: “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 brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus’ sports car, motorsports and engineering consulting operations.
“It is actively exploring future growth opportunities to diversify Lotus Cars’ business model, including through third-party manufacturing.”
So why is Lotus Cars sacking 550 worker in Norfolk?
Lotus Cars is laying off up to 550 workers in Norfolk due to global automotive market uncertainties, US tariffs, and a business restructuring aimed at improving competitiveness. This latest round of job cuts follows smaller reductions earlier in 2024 and 2025.
The company has cited the impact of tariffs imposed by former US President Donald Trump on vehicles made in the UK. While a trade deal in May 2025 lowered the tariff on UK car exports to 10 percent (for the first 100,000 cars), this is still significantly higher than the previous 2.5 percent rate. The tariffs have made UK-built cars less competitive in the US, a major market for Lotus.
Lotus, which is owned by Chinese automotive giant Geely, is consolidating its business and increasing integration across the wider Lotus group. This involves sharing resources and collaboration in technology, engineering, and operations across its global sites, including a factory in Wuhan, China, where its electric vehicles (EVs) are built.
Lotus has experienced a slowdown in demand for its electric vehicles like the Lotus Emeya hyper GT and Lotus Eletre SUV, particularly from Chinese customers. Overall sales for the first quarter of 2025 dropped by 42 percent compared to the previous year, with losses, though slightly eased, remaining significant.
Lotus stated the restructuring is necessary to create a “flexible and agile” business model that can adjust operations and resources according to demand.
