Lotus Ruled Out Closure of U.K. Plant Amid Global Trade Uncertainties

Lotus Technology is exploring strategic options for its Hethel plant in England but has ruled out closure. The British sports-car maker posted a Q1 net loss of $183 million, with revenue falling 46% to $93 million. Total deliveries decreased to 1,274 units from 2,194 units. Despite reports of possible closure, Lotus remains committed to the UK and its customers.

Lotus Technology Inc. (LOT) reported its Q1 2025 financial results, showing a net loss of $183 million, a 29% reduction from the same period last year. Revenue declined by 46% to $93 million, while total deliveries decreased to 1,274 units from 2,194 units in Q1 2024. Despite these challenges, the company has ruled out plans to close its Hethel plant in England and remains committed to the UK market.

LOT's gross margin improved to 12% from a negative margin in Q4 2024, driven by a 43% year-on-year decrease in cost of revenue to $82 million. Vehicle deliveries to distributors increased by 42% to nearly 1,300 units, while user vehicle deliveries exceeded 2,000 units, marking a 10% year-on-year increase. The company's gross profit was $11 million, with an operating loss of $103 million, a 56% year-on-year decrease.

LOT's CEO, Qingfeng Feng, highlighted the company's focus on hyper hybrid technology and PHEVs, which are well-received in China and gaining interest in the US and EU markets. The upcoming hyper hybrid model is expected to feature a 300-kilometer range on battery power and over 1,000 kilometers combined, with dual hypercharging technology allowing a battery charge from 10% to 80% in 12 minutes.

The company is also exploring strategic options to enhance efficiency and ensure global competitiveness, with a focus on localization plans in the US to mitigate the impact of tariffs. LOT's parent company, Geely, has reorganized its diverse portfolio of car brands, which also includes Volvo, Polestar, and Lynk & Co.

In response to reports of possible closure, LOT released an official statement: "Lotus Cars is continuing normal operations, and there are no plans to close the factory. We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market. We have invested significantly in R&D and operations in the UK, over the past six years. Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage."

LOT's Q1 results and strategic plans demonstrate the company's commitment to navigating the challenges posed by US tariffs and maintaining its presence in the UK market. The company's focus on hyper hybrid technology and PHEVs, as well as its exploration of strategic options, indicate its efforts to enhance efficiency and ensure global competitiveness.

References:
[1] https://finance.yahoo.com/news/lotus-technology-inc-lot-q1-070027054.html
[2] https://www.bbc.com/news/articles/cdr3gn3lv8zo
[3] https://www.carexpert.com.au/car-news/lotus-considering-closing-uk-factory-moving-to-the-us-report