2 weeks Ago
Lotus has committed to being based in Norfolk despite revealing that most of its latest redundancies will be made at its Hethel headquarters. The sportscar manufacturer is cutting up to 270 jobs, blaming the decision on Donald Trump’s US tariffs and a shifting demand for sportscars. The latest wave of redundancies follows 94 jobs that were lost after a restructuring of the business last November.
Lotus' Hethel factory (Image: Denise Bradley) However, in a letter sent to its staff seen by this newspaper, Lotus said it remains “committed to the UK” which is the “home to the Lotus brand.” “We remain committed to the UK; it is home to the Lotus brand, sports car manufacturing and global design, and a key commercial market for us,” Matt Windle, group vice president and managing director of Lotus Cars, wrote in the letter. Lotus's European boss Dan Balmer recently told Autocar that Lotus's Hethel headquarters is "a very important part of our business, and will continue to be so as well.
" “Having that as our sports car base is important,” he added, citing the importance of having an FIA-approved test track at the site, and “all the heritage that goes with that." An aerial view of Lotus' Hethel base taken in 2018 (Image: Lotus) Trump’s tariffs mean UK car manufacturers are now being hit with a 25pc import fee in the US. Around 25,000 jobs in the UK are at risk because of the fees on car imports, the Institute for Public Policy Research (IPPR) has warned.
Currently, one in eight UK-built cars are exported to the US. Lotus is owned by Chinese car company Geely Holding Group. Wuhan-based Lotus Technology builds the brand's Emeya and Eletre SUVs in China.
The Lotus Emira (Image: Lotus) Its Chinese operation now looks set to be severely affected by the tariffs, with the country locked in a trade war with the US. 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.
Lotus Europa production at Hethel (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. THE LETTER IN FULL The letter was addressed to staff from Matt Windle, group VP and MD at Lotus Cars: Dear colleagues, As a company, we have made significant steps forward in recent years; however, we are not immune to the extremely difficult conditions facing the whole automotive industry. Volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars have exacerbated an already challenging situation.
We will look to mitigate the impact of these challenges, but they are expected to have a direct impact on sales for our products and services in the months ahead. From an engineering perspective, our primary activities in the medium-term will centre around the development of future variants of the Emira, to further expand the market potential of this product and to ensure that we are maximising the significant investment committed to the platform to date. This focus is combined with a drive for greater synergy across the wider Lotus brand and with our largest shareholder and technology partner, Geely Holding Group.
This will see an increased emphasis on shared resources and collaboration to deliver efficiency improvements in technology, engineering and operations. Despite the best efforts of everyone, we have had to look once again at the size and shape of the Lotus Cars business to enhance our competitiveness, and unfortunately, I must inform you that we are proposing a reduction of up to 270 UK-based roles. We remain committed to the UK; it is home to the Lotus brand, sports car manufacturing and global design, and a key commercial market for us.
What happens next: If you are at risk of redundancy, you will receive details you your work email address or a letter confirming this, which will be sent by close of business today. We expect the redundancy process to take approximately 16 weeks, and we will ensure you are kept up to date as we progress..
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.I know that this decision will have a personal impact for everyone across the company. I’m also fully aware that the news comes after what’s already been a difficult time for everyone, and I want to thank you in advance for your continued understanding through this process, during which we commit to keeping you fully supported and informed.
Thank you for your patience and understanding. Matt Windle Group VP and Managing Director of Lotus Cars.
