Lotus on Friday announced plans to lay off up to 270 people throughout its Hethel manufacturing facility and headquarters, the BBC reports. The company cited "volatile and evolving market conditions, including the US tariffs."
The layoffs come six months after the company warned media jobs could be at risk. Lotus posted a $200 million loss through the first half of 2024, and despite sales gains, profitability has struggled to match pace.
In a statement to the BBC, Lotus says it plans to work more closely with Chinese parent company Geely in the future, though the brand says it remains committed to the United Kingdom. Here's the full statement:
"Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions, including the US tariffs and shifting consumer demand for sports cars.
"The company plans to increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group.
"It will look at greater resource sharing and collaboration in technology, engineering, and operations."
Lotus has a two-fold problem. The first are its two EVs, the Electre and the Emeya. Demand for cars like these has fallen, leaving a smaller buyer pool. And whether we're talking about performance or range, they're uncompetitive. So the few potential buyers out there will likely choose something else.
The next are Trump's tariffs. The US is one of Lotus's most important markets, and as of this writing, a 25-percent tariff is levied on all vehicles imported from the UK, where the company assembles its Emira sports car. Its two EVs are assembled in Wuhan, China, where the US currently charges a 145-percent tax on imports. As of this week, the carmaker has paused all shipments to the US indefinitely.
These tariffs would likely eat up what little profit margin these cars produced, explaining the layoffs and restructuring. That leaves little hope for Lotus's upcoming Elise replacement, the all-electric Type 135. That car was originally supposed to debut in 2027, though its future is now unclear.
Lotus, like many niche British carmakers, routinely suffer with tumultuous, decades-long battles with profitability. Let's hope the company makes it out of this one alive.
