Lotus Says Its UK Plant Isn’t Closing, But U.S. Production Remains Possible
Over the weekend, several outlets—including the BBC and Financial Times—reported that Lotus might shut down its historic Norfolk factory and halt UK car production, potentially affecting 1,300 jobs. The company has now denied those claims, stating: “Lotus Cars is continuing normal operations, and there are no plans to close the factory.”
Still, Lotus confirmed it’s exploring ways to boost efficiency and stay competitive globally. CEO Feng Qingfeng revealed during the company’s Q1 earnings call that Lotus is considering building cars in the U.S. to offset tariff-related losses: “Localization is a feasible plan,” he said.
Rather than constructing a new plant, Lotus may turn to Volvo’s Ridgeville, South Carolina factory—owned by parent company Geely. The facility, which currently builds the EX90 and Polestar 3, has unused capacity and could handle assembly of the Emira and future electric models.
Despite Volvo’s recent announcement to cut about 125 jobs from the Ridgeville plant, it still plans to expand operations and add 4,000 positions in the long term. A final decision on using the site for Lotus production has yet to be made.
Time is critical for Lotus, as the U.S. is its fifth-largest market. Emira exports were paused in April due to steep tariffs on Chinese-built vehicles but are set to resume in August with the 2026 model. The China-made Eletre SUV and Emeya sedan remain unavailable stateside due to similar trade restrictions.
Even as U.S. manufacturing is considered, Lotus insists its UK roots remain strong:
“We’ve invested heavily in our UK R&D and operations. Lotus is committed to its British heritage and to its employees, customers, and partners. The UK remains the heart of the Lotus brand.”
Shutting down the Norfolk site would be a major blow to Britain’s declining auto sector. UK car production hit a 76-year low in May, down 33% year-over-year. Meanwhile, U.S.-bound exports from British carmakers like Jaguar Land Rover and Aston Martin dropped over 55% due to rising tariffs.
