Geely Might Restore Lotus's Glory by Shifting Production to the U.S. | Carscoops

      The outlook for the British brand appears grim as UK production may become obsolete.

      June 27, 2025 at 21:12

      by Michael Gauthier

      Lotus is contemplating the possibility of halting production in the United Kingdom and relocating assembly to America.

      Closing the Hethel facility could lead to the unemployment of around 1,300 individuals.

      The company is set to launch its first plug-in hybrid later this year, as customers seem to be turning away from electric vehicles (EVs).

      Lotus faced a difficult first quarter, delivering 1,274 vehicles, marking a 42% drop compared to the previous year. Further bad news followed with revenues totaling just $93 million (£67.8 / €79.4), a 46% year-over-year decline. The firm also reported a net loss of $183 million (£133.4 / €156.2).

      Although these results are disappointing, Lotus has confirmed that its first plug-in hybrid model will debut later this year, featuring their 900V Hyper Hybrid EV technology, initially announced the previous November.

      At the time, the company claimed the Hyper Hybrid powertrain would deliver a total driving range exceeding 684 miles (1,100 km), a substantial enhancement compared to the Eletre, which offers a WLTP range of between 254 and 373 miles (409 – 600 km) in the UK.

      In addition to discussing Hyper Hybrids, Lotus CEO Qingfeng Feng mentioned, “We remain closely attuned to evolving dynamics in key markets such as the U.S. and are actively evaluating strategic pathways as well as localization opportunities to further strengthen our presence and expand sales operations in the global markets.” This may be a significant indication regarding the future of Lotus production.

      In fact, Autocar is now reporting that production in Hethel will cease and move to the United States, which would likely undermine claims of being a ‘British’ automaker.

      The publication indicates that Lotus production could be transferred to Volvo’s facility in Ridgeville, South Carolina, which currently manufactures the EX90 and Polestar 3. This move would help the company navigate Trump’s tariffs, even though the US and UK have already established a trade agreement. Nevertheless, Lotus informed the publication that Emira production has been suspended since mid-May due to “repercussions from the tariff increase in its key market of the US.”

      BBC News states that this relocation is currently only a consideration but could lead to about 1,300 job losses. However, the Financial Times suggests that a decision has already been made and points to a serious situation, as the company has reportedly been “struggling to pay its suppliers in recent weeks.”

      While Lotus faces numerous challenges, one of the most significant appears to be the lack of interest from customers in EVs. As Feng pointed out, “We … understand that a pure-electric sports car is not going to attract a lot of attention.” Consequently, the aforementioned Hyper Hybrid powertrain will be incorporated into both lifestyle vehicles—like the Eletre and Emeya—as well as sports cars.