Lotus UK Production Ends | Carmaker News
- British sports car manufacturer Lotus, under the control of Chinese automotive giant Geely, is planning to end production in the United Kingdom.This decision jeopardizes 1,300 jobs at its...
- The company intends to permanently cease production at the Hethel plant, its sole UK manufacturing base, possibly as early as next year.
- Geely acquired a 51% stake in Lotus in 2017 as part of an investment deal with Malaysian owner Proton.
Lotus, the iconic British sports carmaker, is set to end UK production, putting 1,300 jobs at risk at its Hethel plant. This meaningful move, driven by supply chain issues and a strategic shift towards electric vehicles, marks a turbulent period for the UK’s automotive industry.Under the ownership of Geely, Lotus faces mounting challenges including a temporary shutdown due to supplier payment difficulties and U.S.tariffs. The company’s decision to cease production at its sole UK manufacturing base signals a crucial pivot in its global strategy, potentially impacting local employment and production output. News Directory 3 reports on the latest developments, offering essential insights into the car manufacturing industry. Discover what’s next for Lotus and the future of its UK operations.
Lotus to End UK Production, 1,300 Jobs at Risk
Updated June 27, 2025
British sports car manufacturer Lotus, under the control of Chinese automotive giant Geely, is planning to end production in the United Kingdom.This decision jeopardizes 1,300 jobs at its Hethel plant in Norfolk, marking another setback for the UK’s automotive industry. The Lotus production halt follows recent struggles to pay suppliers, leading to a temporary shutdown of the Hethel facility for about a month.
The company intends to permanently cease production at the Hethel plant, its sole UK manufacturing base, possibly as early as next year. Lotus acknowledged a production pause from mid-May to manage inventories, citing supply chain disruptions linked to U.S. tariffs.Matt Windle, head of Lotus Cars Europe, and Geely both declined to comment on what they termed “a rumor.”
Geely acquired a 51% stake in Lotus in 2017 as part of an investment deal with Malaysian owner Proton. The investment, initially viewed as a lifeline for Lotus after years of financial losses as its founding in London in 1948, saw Geely invest approximately £3 billion in new technology and factory upgrades. However, the focus later shifted to a new plant in Wuhan.
Last year, Lotus Technology, the brand’s electric vehicle arm, was listed in the U.S. through a merger. In April, Lotus Technology announced its intent to acquire Geely’s 51% stake in the UK business after Geely exercised an option to sell. Li Shufu, the billionaire founder of Geely, wich also owns Volvo Cars and Polestar, has been divesting global assets and streamlining core operations since last year.
The potential closure of the Hethel plant, established by Lotus in 1966, would further impact UK car production, following similar closures by Honda and Ford in recent years. UK vehicle production in May plummeted to its lowest level since 1949, partly due to tariffs that disrupted shipments to the U.S.
what’s next
The future of the Hethel plant and its workforce remains uncertain as Lotus transitions towards electric vehicle production and consolidates its manufacturing operations. Further announcements are expected in the coming months.