Lotus Almost Gave Up 60 Years of British Manufacturing to Relocate to the US
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Reports from various sources over the weekend indicate that Lotus is contemplating, and may still be considering, halting production at its British assembly facility, which has been operational since the mid-1960s, and possibly relocating to the United States. This consideration arises as a reaction to tariffs that, although the administration has recently softened its stance, still stand at 25% for the time being.
A report released in the UK last week highlighted that automotive exports from the country to the United States have decreased by approximately 50% this year. The new tariff rates are set to take effect at the end of June.
According to the BBC, Lotus was already investigating this move when the UK government intervened. The matter remains "under review" at Lotus, as reported by sources to the news outlet, but currently, it seems that the company’s Hethel assembly facility will continue its operations.
Lotus
This reflects a sense of urgency for the small manufacturer, whose only viable alternative would be to produce vehicles in China, where it has a second facility. The Wuhan plant is a result of Lotus’s parent company, Geely. Lotus faces mounting pressure not only to sustain its export operations to the critical U.S. market but also to ensure compliance of its latest models with U.S. regulations. An unlikely scenario could involve a V8-powered Lotus Emira manufactured in the United States.
There is notable historical precedent for high-powered British sports cars, but in this situation, Lotus would likely obtain a biturbo engine and automatic transmission from Mercedes-Benz, rather than a robust Detroit V8. We remain uncertain how this aligns with the company's long-standing principle of "simplify and add lightness," championed by its founder, who has since passed, but we're open to the concept.
Lotus is not the only low-volume manufacturer facing challenges. Ineos, which produces heritage-style Land Rover Defender replicas equipped with modern features, has increased prices this year due to the ongoing trade conflict.
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Lotus Almost Gave Up 60 Years of British Manufacturing to Relocate to the US
According to the BBC, the UK government stepped in to prevent Lotus from exiting the country completely.