The British Automaker Under Chinese Ownership Slashes Jobs

Lotus Restructures, Announces Layoffs: A Challenging Road Ahead. Image source: Lotus.

This week, Lotus announced a challenging decision to lay off 270 staff members across its manufacturing facilities and headquarters in Hethel, Norwich, UK. In a statement to BBC, Lotus attributed the layoffs to “volatile and ever-changing market conditions, including US tariffs.”

This news comes just six months after Lotus warned its media staff about potential job losses. The company, owned by Geely, reported a USD 200 million loss in the first half of 2024, despite increasing sales. Profitability remains a struggle for the automotive brand.

In a statement to the BBC, Lotus shared its plans for closer collaboration with its parent company, Geely, in China, while remaining committed to its UK roots. “Lotus plans to enhance collaboration across the entire Lotus brand and with its largest shareholder and technology partner, Geely Holding Group. Lotus will explore further resource sharing and cooperation in technology, engineering, and operations,” the statement read.

According to Motor1, Lotus is facing two significant challenges. Firstly, their electric vehicles, the Electre and Emeya, are struggling with low sales due to decreased demand for such models. Their performance and range are also not competitive in the current market.

The Lotus Emeya has failed to capture customer interest. Image source: Lotus.

The second challenge is the new tariff policy imposed by President Donald Trump, as the US is one of Lotus’s most important markets. Currently, the Lotus Emira sports car, produced in the UK, faces a 25% import tax when entering the US, while the Electre and Emeya, manufactured in Wuhan, China, are taxed at a staggering 145%. According to Motor1, Lotus has indefinitely halted car imports into the US due to these tariffs.

These new tariffs could erode the already slim profits that these models generate, explaining the difficult decision to lay off staff and restructure, as analyzed by Motor1.

This situation also casts doubt on the anticipated launch of the Type 135, an all-electric sports car intended to replace the Lotus Elise. Lotus had initially planned to unveil the Type 135 in 2027, but those plans may now be subject to change.

In 2017, Geely completed the acquisition of a 51% stake in the iconic British sports car maker Lotus. Prior to this, Lotus was owned by the Malaysian conglomerate DRB-Hicom through its subsidiary Proton.