British luxury car manufacturer Lotus is planning to reduce its workforce by 550 employees at its headquarters in the UK, according to reports from the BBC. The company, which currently employs 1,300 workers at its site in Hethel, near Wymondham in Norfolk, stated that this decision was made following a review of its business objectives in response to current market conditions.
Lotus, renowned for its high-end sports cars and electric vehicles, was established in the early 1950s by engineer Colin Chapman and has been located in Hethel since the 1960s. In a recent statement to the BBC, the company emphasized the necessity of these job cuts to ensure a sustainable future amidst the rapidly changing automotive landscape, marked by uncertainty due to global policy shifts such as tariffs.
The company remains dedicated to the UK, with Norfolk serving as the hub for Lotus’ sports car production, motorsports activities, and engineering consulting services. Lotus is actively exploring avenues for future growth, including potential third-party manufacturing partnerships.
Following this announcement, South Norfolk MP Ben Goldsborough expressed regret over the job losses but highlighted the relief that Lotus UK’s complete closure had been averted. Local council leader Daniel Elmer underscored the importance of supporting the affected employees and pledged to collaborate with the county council to provide assistance packages. Efforts are also underway to engage with the government to secure the future of this iconic brand in South Norfolk.
A Government spokesperson acknowledged the challenges faced by car manufacturers like Lotus, particularly in light of global tariffs and high energy prices. The government’s Industrial Strategy aims to address these issues by reducing energy costs, ensuring stability for vehicle manufacturers through initiatives like the Zero Emission Vehicle (ZEV) mandate, and securing beneficial trade agreements to safeguard jobs.
Earlier this year, Lotus refuted rumors of a potential closure of its UK factory in response to new US tariffs announced by Donald Trump. The company had temporarily halted production in Hethel amidst broader challenges within the UK automotive sector.
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