Rumors swirl, but Lotus says the UK plant is safe
Reports over the weekend suggested Lotus might shut down its historic factory in Norfolk, England, threatening more than 1,300 jobs. But the automaker pushed back, saying in a statement, “Lotus Cars is continuing normal operations, and there are no plans to close the factory.” The denial came after the BBC and Financial Times published stories claiming Lotus was preparing to end UK vehicle production altogether.
Still, the company left the door open to other changes, saying it’s “actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.”
Lotus looks to America to avoid tariffs
One option on the table is building cars in the U.S. Speaking during a Q1 earnings call, Lotus CEO Feng Qingfeng acknowledged that assembling vehicles stateside could help the brand circumvent tariffs. “We are trying to leverage our U.S. strategy to catch up on the losses due to the tariff hike. We believe that localization is a feasible plan,” he said.
Lotus
Rather than build a brand-new facility, Lotus is reportedly eyeing Volvo’s plant in Ridgeville, South Carolina. Volvo, also owned by Geely, opened the site in 2018 and has room to build 150,000 cars per year, but hasn’t reached that number. After ending production of the S60 sedan, the factory now builds just two models: the EX90 and Polestar 3.
The Ridgeville factory could give Lotus a soft landing
The Ridgeville plant already faced a slight workforce cut in May, when Volvo announced it would lay off 5% of its staff—about 125 workers. However, in the long term, the company still plans to expand its operations and add thousands of new jobs. For Lotus, using an existing Geely-owned factory would make far more sense than constructing a new one. Automotive News reports that the Emira sports car and Lotus’s upcoming EVs could be assembled in South Carolina if a deal goes through. So far, there’s no final decision from Geely or Lotus.
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Tariffs disrupt sales as Lotus’s U.S. ambitions grow
Lotus has good reason to make a move. The U.S. is its fifth-largest market, but recent tariffs have made exporting cars difficult. Emira exports were halted in April due to increased duties imposed by the Trump administration, but sales will resume in August when the 2026 model hits U.S. dealerships.
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The brand’s electric models, including the Eletre SUV and Emeya sedan, are made in China and can’t currently be sold in the U.S. because of the same tariffs.
Final thoughts
Even as Lotus insists its UK operations are safe, industry watchers remain concerned. The British car sector has been hit hard in recent years, and production dropped by a third this May compared to last year. Only 49,810 cars were built, which is the lowest figure for the month since 1949.
Exports to the U.S. are also down sharply. The Society of Motor Manufacturers and Traders says U.S. shipments from British automakers fell 55.4% year over year in May. The country’s share of UK auto exports shrank from 18.2% to just 11.3%. Whether or not Lotus expands to South Carolina, it’s clear the company, and the wider UK auto industry, is under pressure to adapt.
