Lotus to Slash 270 UK Jobs Amid US Tariffs and EV Market Shift
By Team Dailyrevs April 15, 2025
Lotus confirms up to 270 job cuts in the UK due to US import tariffs and declining demand for ICE sports cars like the Emira.
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Geely-owned Lotus is restructuring operations at Hethel to focus on its electric future, including the Evija hypercar and Eletre SUV.
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25% Trump-era tariffs on Chinese imports are making expansion into the US more difficult for Chinese-owned brands manufacturing outside the US.
Lotus Restructure: Tariffs, EVs, and the End of an Era for UK Jobs
British automaker Lotus, known for its purist approach to sports cars, is making a hard pivot — and hundreds of UK jobs are on the line as a result. The company has announced that up to 270 positions could be eliminated as part of a broader plan to future-proof its operations and respond to global economic pressures.
Why This Matters Now
In a statement, Lotus said:
“Lotus has today opened a consultation process with colleagues and their representatives on a proposal to restructure its organisation. The proposals may impact up to 200 Lotus roles in the UK.”
Media reports now confirm that number could reach 270 roles, impacting staff at both the Hethel headquarters and the company’s facility in Norwich.
Let’s break down the driving forces behind this move — and why it’s not just about Lotus.
1. The US Tariff Problem
At the core of the issue is a 25% tariff introduced during the Trump administration, which targets vehicles imported from China. While Lotus manufactures its Emira and Evija in the UK, the Eletre SUV — a flagship EV — is made in Wuhan, China.
Trying to export a Chinese-built car into the US with that kind of tax burden is a losing proposition, and it’s forcing the company to reconsider its go-to-market strategy — and its costs.
2. Changing Consumer Preferences
There’s a broader shift happening in the automotive world — one that Lotus, for all its racing heritage, can’t ignore. Consumers are buying fewer gasoline-powered sports cars. They’re prioritizing practicality, electrification, and sustainability. In Lotus’s own words:
“Like other automotive manufacturers, Lotus is not immune to global economic conditions, and is currently in consultation to restructure its UK operations to secure the long-term future of the business.”
The Emira, the company’s last ICE sports car, is symbolic of the brand’s legacy. But the future? That’s Evija and Eletre — both fully electric, and more aligned with where the market is headed.
3. EV Push and the Role of Geely
Lotus is owned by Geely Holding Group, one of China’s biggest automotive players. With Geely pouring billions into electrification across its portfolio (which includes Volvo and Polestar), it was only a matter of time before Lotus had to align itself more aggressively with that vision.
But electrification isn’t cheap — and neither is restructuring a company that’s long been rooted in traditional manufacturing techniques and niche ICE performance products.
Affected Models & Production Strategy
| Model | Type | Factory Location | Strategic Role |
|---|---|---|---|
| Emira | ICE Sports Car | Hethel, UK | Final petrol-powered model |
| Evija | Electric Hypercar | Hethel, UK | Halo product, EV showcase |
| Eletre | Electric SUV | Wuhan, China | High-volume EV offering |
The Emira, although not directly affected by tariffs, is facing a demand slump — and without strong sales, even heritage models can’t be sustained. The Eletre, being made in China, is vulnerable to US import tariffs, and Evija remains a low-volume, brand-building effort.
What’s Next for Lotus?
The company has launched a 30-day consultation process with its employees, after which it will finalize the scale of job cuts. The restructuring, according to insiders, is part of a larger effort to shift Lotus’s manufacturing, R&D, and marketing focus toward EVs and global competitiveness.
In short: This is not a temporary belt-tightening. It’s a strategic recalibration.
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