Lotus denies Hethel closure plans, citing ongoing operations and future efficiency strategies under Geely ownership.
New U.S. tariffs on European, Chinese imports drive Lotus to explore manufacturing vehicles in America.
Lotus aims to resume Emira shipments to the U.S. in August after Britain secures lower tariffs.
Lotus Cars has denied reports it plans to close its Hethel manufacturing site in England, even as the company explores building vehicles in the United States to offset steep tariff costs.
In a statement issued June 28, Lotus said it was “continuing normal operations” at Hethel, adding there were no plans to shut the plant. The automaker, owned by China’s Geely Group, noted it is assessing strategic options “to enhance efficiency and ensure global competitiveness.”
Pressure has mounted on Lotus following U.S. trade barriers. The company halted shipments of its gasoline-powered Emira coupe to the U.S. in April after a 25 % tariff was imposed on European auto imports. It also stopped selling its China-built Eletre electric crossover in the U.S. after tariffs on Chinese EVs were raised to 100 %. Lotus’s global deliveries fell 42 % to 1,274 units in the first quarter.
Financial strain has added to the challenges. The company reported a net loss of $183 million for the first quarter, narrowing from $258 million a year earlier, while its debt climbed to $3.3 billion.
Reports indicated Geely had considered shutting the Hethel plant, which employs about 1,300 people, and shifting some production to the U.S. to avoid tariffs. British government officials requested emergency talks with Geely and Lotus to keep the factory open.
Lotus Could Add a Hybrid Version of the Emira, due to its Electric Successor Being Delayed
Lotus CEO Feng Qingfeng confirmed during a June 25 earnings call that the company is in discussions with strategic partners about starting U.S. production to reduce tariff exposure. He said “localization is a feasible plan,” adding that building cars in the U.S. could eliminate tariffs entirely.
Feng did not specify which models could be produced in the U.S., though a source told Automotive News Europe the Emira is under consideration. Lotus could potentially build vehicles at Volvo’s South Carolina facility, which has available capacity. Volvo is also controlled by Geely.
Despite trade pressures, Lotus plans to resume shipments of the Emira to the U.S. in August with the 2026 model year after Britain negotiated a reduced 10 % tariff on European imports. The U.S. accounted for 20 %t of Lotus global sales last year, with 2,578 units sold, up 21% from 2023. Global deliveries of the Emira totaled 5,272 in 2024.
Source: Automotive News
