British luxury sportscar manufacturer Lotus is planning to reduce its workforce by 550 employees at its headquarters in the UK, according to reports by the BBC. The company, which currently employs 1,300 workers at its site in Hethel, near Wymondham in Norfolk, cited a strategic review aligned with prevailing market conditions as the reason for this decision.
Lotus, renowned for its high-end sportscars and electric vehicles, was established in the early 1950s by engineer Colin Chapman and has been situated in Hethel since the 1960s. In a statement to the BBC, the company emphasized the necessity of this move to ensure a sustainable future amidst the rapidly evolving automotive landscape, marked by uncertainties stemming from global policy changes and tariffs.
The brand affirmed its commitment to the UK, with Norfolk continuing to serve as the hub for Lotus’ sports car production, motorsports, and engineering consulting activities. Lotus is actively exploring avenues for future growth, including potential collaborations for third-party manufacturing.
Following the announcement, South Norfolk MP Ben Goldsborough expressed dismay over the job losses but highlighted the relief that Lotus UK’s complete closure had been averted. Meanwhile, Daniel Elmer, council leader, underscored the importance of supporting affected employees and indicated plans to collaborate with the county council to provide assistance packages.
A Government spokesperson acknowledged the challenges faced by automakers like Lotus and emphasized the government’s efforts to address industry issues through initiatives such as reducing energy costs, ensuring regulatory clarity for vehicle manufacturers, and securing beneficial trade agreements.
Lotus had previously refuted speculations about shutting down its UK facility earlier in the year amid discussions surrounding US tariffs announced by President Donald Trump. The company had temporarily halted production in Hethel amidst broader challenges within the UK automotive sector.
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