Sports car maker Lotus plans to cut up to 550 jobs at Norfolk factory

Sports car maker Lotus has announced restructuring plans which could cut up to 550 jobs at its UK factory in Norfolk.

The carmaker said the decision comes at a time of uncertainty for the sector amid Donald Trump’s tariff hikes in the US.

The company has launched a consultation process to determine how many roles out of the around 1,300-strong workforce at the factory will be affected.

The UK headquarters, based in Hethel, has been the home of the sports car’s production since 1966.

Under the proposals, roles across divisions including engineering, manufacturing, and supporting services will be affected.

A spokeswoman for the group said: “The proposal is designed to enable Lotus Cars to operate with a flexible and agile business model, allowing it to ramp operations and resources in line with demand, as and when needed.

“We believe this is necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment, which is seeing uncertainty with rapid changes in global policies, including tariffs.”

A trade deal between the UK and the US reduced tariffs on UK-made vehicles exported to America from 27.5% to 10% from June 30.

But it remains higher than the 2.5% levy on UK cars that was in place before Mr Trump’s “liberation day” tariff announcements.

Lotus added that restructuring was “vital to enhancing our future competitiveness in the market”.

It said: “The brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus sports car, motorsports and engineering consulting operations.

“It is actively exploring future growth opportunities to diversify Lotus Cars’ business model, including through third-party manufacturing.”

In June, Lotus said it had “no plans” to close the factory following reports that Chinese owner Geely was proposing to shut its UK operations.

Reports had said the company was considering the closure in favour of a new plant in the US.

A spokesman for the Government’s Department for Business and Trade (DBT) said: “We recognise carmakers such as Lotus have been facing significant long-term challenges and we know this announcement will be concerning for workers and their families.

“This Government inherited some of the highest industrial energy prices in the world, while businesses most impacted by global tariffs have faced increased pressures.”

The DBT added that it had “secured landmark trade deals, including our deal with the US that saved thousands of jobs in Britain”.