Lotus Dismisses US Production Rumors, Confirms UK Factory Stays Open.

Lotus has denied plans to move sports car production to the US, despite reports that it was considering relocating to avoid Donald Trump's tariffs on foreign-built cars. The company has confirmed it is exploring new market opportunities but is continuing normal operations at its UK factory in Norfolk. Lotus employs 1,300 people at Hethel and has invested significantly in R&D and operations in the UK. The UK is the heart of the Lotus brand and its largest commercial market in Europe.

Lotus, the British sports car manufacturer, has refuted reports of relocating production to the United States to avoid tariffs imposed by Donald Trump on foreign-built cars. The company has confirmed that it is exploring new market opportunities but continues to operate normally at its UK factory in Norfolk. Lotus employs 1,300 people at Hethel and has invested significantly in research and development (R&D) and operations in the UK. The UK is the heart of the Lotus brand and its largest commercial market in Europe [1].

Lotus had been considering moving production to the US to mitigate the impact of the 25% tariff on imported cars and car parts, which has disrupted its business. However, the company has denied any plans to close its UK factory. Instead, Lotus is actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market [2].

The UK government has agreed to lower tariffs on UK-made cars entering the US to 10% by the end of June, which may alleviate some of the pressure on manufacturers. However, the current tariff rate remains at 25%, forcing companies to absorb higher costs [3].

Lotus Technology Inc. reported its Q1 2025 financial results, delivering 1,274 vehicles and generating total revenue of $93 million, a 46% decrease year-over-year. The company's gross margin improved to 12%, and the operating loss narrowed by over 50% to $103 million. Lotus is also revamping its vehicle lineup and has launched a national GT racing series in China [4].

Lotus's shareholder base has seen significant changes in recent quarters, with institutional investors adjusting their positions. For instance, MARINER, LLC removed 290,422 shares (-73.5%) from their portfolio in Q1 2025, while TIDAL INVESTMENTS LLC and TOWNSQUARE CAPITAL LLC also reduced their holdings [5].

References:

[1] https://www.bbc.com/news/articles/cdr3gn3lv8zo
[2] https://www.scmp.com/news/world/united-states-canada/article/3316008/nike-says-us-tariffs-will-add-us1-billion-costs-plans-reduce-china-production
[3] https://www.theguardian.com/business/2025/jun/28/business-secretary-to-meet-with-lotus-after-reports-it-plans-to-scrap-uk-operations
[4] https://profit.pakistantoday.com.pk/2025/06/28/lotus-denies-closure-of-uk-factory-amid-job-loss-concerns/
[5] https://www.nasdaq.com/articles/lotus-technology-inc-reports-first-quarter-2025-financial-results-deliveries-1274-vehicles