There aren’t many car companies that would want to switch places with Lotus right now. The struggling British-Chinese automaker is apparently set to cut 550 jobs at its headquarters in Norfolk, England. In any case, that’s a lot of workers, but when you consider that just 1,300 folks work there in total, the worrying nature of the cuts becomes clearer.
Lotus had previously denied reports that it was going to close its factory in the area and set up a new plant in the U.S., saying that even though it was “actively exploring options in the global market,” it remained “committed to the UK,” according to the BBC. The automaker has since changed its tune following a review of its “business objectives in line with the current market conditions.” In a statement to the BBC, Lotus tried to impress on reporters that this was a matter of self-preservation in the UK:
“We believe this is necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment, which is seeing uncertainty with rapid changes in global policies including tariffs.
[…]
“It is actively exploring future growth opportunities to diversify Lotus Cars’ business model, including through third-party manufacturing.”
A member of Parliament who represents the area called the job cuts “terrible news” and a “punch in the stomach” for workers.” I’ve got to agree with him.
Not terribly surprising
If you’ve been keeping up with the Lotus’ recent happenings, none of this should come as much of a surprise. The company has been — at best — treading water for most of its life, and things only seem to be getting worse. Hell, this isn’t even the first time there have been layoffs in Hethel this year. In February, the automaker had to cut to 270 jobs because of weak demand for the Emira sports car.
President Trump’s tariffs actually forced the automaker to temporarily pause Emira sales in the U.S. for a time, and only a few of the super expensive Chinese-built electric Eletre SUV were brought over before deliveries of it were also paused because tariffs would make them even more expensive. The Emeya sedan has yet to go on sale, either.
I’m not totally sure where Lotus goes from here, but for a company that has spent its whole life circling the drain, it sure feels like a second flush isn’t that far away. I hope that I’m wrong, but I’m usually not.
