Lotus slashes more jobs amid ongoing uncertainty

Sportscar maker Lotus is culling 40 per cent of its UK workforce but says it is committed to keeping its Norfolk plant operational.

Lotus officials are planning to cut another 550 jobs across its UK operations. That includes some jobs at its manufacturing plant in Hethel, as the Geely-owned company tries to offset ongoing losses.

The Chinese-owned firm blamed uncertainty in the global automotive landscape, including tariffs, for the cuts, which it said would impact all departments.

Almost one-half of the 1300 people currently working for Lotus in the UK will lose their jobs.

The company has been savaged by muted demand for electric vehicles at the luxury end of the automotive market. Previously it had based its expansion on electric ‘lifestyle’ models like the Eletre SUV and Emeya saloon.

Lotus sales have fall by 42 per cent in the first quarter of the year. That is the first significant decline since Geely rolled out the new range of Lotus cars to supplement its traditional sports cars.

In a statement from the company, executives said: “The proposal is designed to enable Lotus Cars to operate with a flexible and agile business model.”

The news comes after the firm said in April that 270 jobs were going, impacting Hethel employees.

Lotus did say that its Hethel site is safe despite the job cuts. 

“The brand remains fully committed to the UK” officials said in the statement. “Norfolk will remain the home of Lotus’ sports car, motorsports and engineering consulting operations.”

Lotus plans to diversify its business model for Hethel. It may even manufacture cars for other brands. For example, it is possible that production of the Polestar 6 electric roadster will take place at Hethel. 

Mao Jingbo is the latest leader of the Lotus operation in the UK, the fourth in under two years.

Geely purchased Lotus in 2017 from Malaysia’s Proton but has yet to see a return on its $NZ4.6b investment. Lotus posted a net loss of $US183m in the first quarter while debts increased to $US3.3b. The company is about to report on its second quarter results.

Lotus announced recently that it had raised $US300m in a share sale. The money “provides us additional flexibility to advance our transformation,” said CEO Qingfeng Feng.