Future of Lotus on the line after announcing fresh redundancies?

The latest wave of redundancies will primarily be made at the sportscar manufacturer's Norfolk headquarters and factory at Hethel, where 94 jobs were lost after a restructuring of the business was announced in November last year.

Lotus said the decision is partly due to “volatile and evolving market conditions including the US tariffs” - with UK car manufacturers now subject to a 25pc import fee.

Lotus' Hethel headquarters and manufacturing facility (Image: Denise Bradley) The tariffs are an industry-wide issue, with the Institute for Public Policy Research (IPPR) warning that around 25,000 jobs in the UK are at risk as a direct result of the fees on car imports. Currently, one in eight UK-built cars are exported to the US.

Lotus is owned by Chinese car company Geely Holding Group, which also owns Volvo, Polestar and Lynk&Co among other automotive technology businesses.

The firm produces its Emeya and Electra electric vehicles (EVs) in Wuhan, and its Chinese operation now looks set to be severely affected by the tariffs, with the country locked in a trade war with the US.

Lotus' Hethel headquarters in 2018 (Image: Lotus) The sale of new petrol and diesel cars will be banned in the UK from 2030, and Lotus has invested more than £500m into technology and infrastructure at Hethel over the past six years to go all electric by 2028.

However, a number of small-volume UK car companies producing fewer than 10,000 cars per year will be exempt from the ban under changes made to the zero-emission vehicle [ZEV] mandate supporting the EV transition. 

This includes Lotus and Aston Martin, as well as heritage brands like Morgan and Caterham, and luxury manufacturer Rolls Royce.

UK car production (Image: The Society of Motor Manufacturers and Traders) Felix Page, deputy editor at Autocar, said there are now “big questions over the future of sportscar manufacturers in the UK” – including Lotus.

Speaking to this paper, he said: "British low-volume manufacturers are so susceptible to any imposition of tariffs, particularly Lotus.

“At Lotus, we’ve seen reports that exports of the Emira have stopped already.”

The Lotus Emira (Image: Lotus) Lotus temporarily suspended production of Emira last month to upgrade its production line. 

Emira was first announced for the US market in 2021, but despite hundreds of the cars being shipped to the country they were stuck at dealerships as Lotus awaited certification by the California Air Resources Board (CARB) - the emissions approval needed in 14 states.

Lotus finally received US emissions certification to sell Emira across the Atlantic last year.

“Lotus’ position in a global sense is confused by the fact that there’s the Chinse operation as well, which is obviously vastly more affected by these US tariffs,” automotive expert Mr Page added.

“The British division of Louts - the traditional home of the company – is a small volume player. The US is a big market for the Emira so cutting off that avenue means job cuts are only natural to compensate for that reduced volume.”

Lotus' Hethel headquarters in 2018 (Image: Lotus) Lotus said the redundancies up to 270 are partly down to “shifting consumer demand for sportscars”.

Rebecca Chaplin, contributing editor at Car Dealer, said: "Whether people want electric sportscars remains a big question mark.

"Lotus are quite ahead of the curve when it comes to electric sportscars and are making big changes to make themselves prepared for the future.”

Lotus' European boss Dan Balmer recently said the brand is committed to being based in Norfolk, saying Hethel remains an important part of the business and its heritage.

Hethel has been the home of Lotus since 1966. 

Its capacity is now around 5,000 cars a year, compared with around 1,500 units annually a decade ago.

UK new car manufacturing (Image: The Society of Motor Manufacturers and Traders) HISTORY OF LOTUS

Lotus Engineering was founded by Colin and Hazel Chapman in 1952, formed with a loan of £25.

However, its origins date back to 1948 when Mr Chapman built his first competition car – an Austin Seven special trials car - while studying structural engineering at University College in London.

Lotus' Hethel base is on the former RAF Hethel site (Image: Lotus) The first Lotus factory was in Hornsey, north London. The firm moved to a purpose-built factory in Cheshunt, Hertfordshire, in 1959, before later moving to its current headquarters at Hethel, near Wymondham, in 1966 - the site of a former Second World War airfield.

Its racing arm, Team Lotus, was established in 1954, competing in Formula One between 1958 and 1994.

The team won seven constructors' titles and six drivers' titles between 1963 and 1978.

Ayrton Senna's Lotus 97T at Estoril during the 1985 Portuguese Grand Prix (Image: Lotus) The Lotus name returned to Formula One grid in 2010 through Tony Fernandes' Lotus Racing team, which used the name on licence from Group Lotus.

Lotus announced last month that it was reviving its racing team this year as part of the 75th anniversary of F1.

Hethel remains the home of Lotus today, producing around 5,000 cars a year.

Lotus Elan production at Hethel (Image: Lotus)Lotus Europa production at Hethel (Image: Lotus)