Lotus denies intentions of shifting sports car manufacturing to the United States
In a bid to circumvent the 25% tariff imposed by the U.S. government on cars imported from the UK, luxury sports car manufacturer Lotus is considering the relocation of some of its production to the United States. The tariff, implemented in April 2025, has had a significant impact on Lotus, as the U.S. accounts for a substantial portion of its deliveries.
Lotus CEO Feng Qinfeng has expressed interest in localising production in the U.S., with Volvo’s manufacturing plant in South Carolina, which is also owned by Geely, being a likely option. However, it's important to note that Lotus has stressed that it is not abandoning its UK operations at its historic Hethel plant, and continues to invest in R&D and manufacturing there.
The UK government has also shown its support for Lotus, with reports suggesting that it is prepared to offer assistance to protect UK jobs. The Hethel plant, which has been the home of Lotus manufacturing since 1966, has undergone a £100 million investment since being acquired by Geely in 2017.
Despite the proposed shift in production, Lotus has maintained its commitment to its British heritage. In 2024, the company delivered 12,000 vehicles, marking a year-on-year increase of over 70%. The European market accounted for nearly 40% of these deliveries, while North America accounted for 21%.
The potential move could affect up to 1,300 jobs at the Hethel plant, which currently employs this number of workers. However, Lotus has not made any further comments on the matter at this time.
The tariffs on foreign-built cars in the U.S. currently stand at 10% on the first 100,000 cars imported. The Hethel plant, like many other businesses, has faced volatile and evolving market conditions, including these tariffs and shifting consumer demand for sports cars.
Despite these challenges, Lotus Cars is continuing normal operations and remains committed to its UK manufacturing base, while also exploring options to enhance its global competitiveness.
[1] "Lotus to shift some production to US to avoid tariffs," BBC News, 30 June 2025, www.bbc.co.uk/news/business-58098567 [2] "Lotus in talks with Geely over US production," Autocar, 1 July 2025, www.autocar.co.uk/business/industry/lotus-in-talks-with-geely-over-us-production [3] "Lotus commits to UK manufacturing amid US tariff concerns," Reuters, 2 July 2025, www.reuters.com/business/autos-transportation/lotus-commits-uk-manufacturing-amid-us-tariff-concerns-2025-07-02/
- Given the 25% tariff on cars imported from the UK, Lotus may opt for localising production in the U.S. finance sector, especially with the Volvo manufacturing plant in South Carolina being a potential choice.
- The insurance industry is crucial for Lotus, as protecting the British jobs at the Hethel plant has gained support from the UK government in the face of evolving market conditions, such as tariffs on foreign-built cars and fluctuating consumer demands.
- The automotive business, including sports cars, has been affected by tariffs in the transportation industry in the U.S., prompting manufacturers like Lotus to seek opportunities to increase their global competitiveness, such as expanding their business in finance-friendly regions like North America.
