Lotus Halves UK Workforce Amidst Trump Tariffs Impacting Sports Car Sales
The British sports car manufacturer reduced its workforce by over half in the past year due to decreased sales in the U.S. market following increased import tariffs.
Lotus has significantly reduced its UK workforce, cutting more than half of its employees in the last year, a consequence of declining sales in the United States attributed to former President Donald Trump's tariffs on British vehicle imports.
At the close of the previous year, the heritage car brand reported having 600 employees, a stark decrease from the 1,300 employed the year prior. The demand for Lotus vehicles in its key U.S. market experienced a downturn after the president escalated tariffs on British vehicle imports by 25 percent.
In response to these tariffs, major British manufacturers, including Jaguar Land Rover and Rolls-Royce, had previously halted shipments of their vehicles to the U.S. Lotus itself suspended the production of new cars for over three months to manage inventory levels affected by the tariffs.
Although the duties were later reduced following negotiations between ministers and U.S. officials, a lingering decrease in demand persisted into the first half of 2026. Sales for Lotus plummeted by 71 percent, totaling 1,539 cars last year.
The company's recently published accounts cite "global tariff uncertainty and evolving trade conditions" as factors impacting its business, leading to a "significant reduction in orders from dealers and consumers." Lotus stated that the workforce reduction reflects a move towards a more efficient, demand-driven operational model, augmented by increased shared services with its owner, Geely.
Lotus also noted that a lower tariff rate of 10 percent, applicable only to the first 100,000 cars exported to the U.S., has "constrained market potential."
While the business had announced in August of the previous year its intention to cut around 550 jobs, the actual number of redundancies now appears to be substantially higher. The job losses have primarily affected Lotus's plant in Hethel, Norfolk, the historic site acquired by founders Colin and Hazel Chapman in 1966.
Geely, the owner of Lotus and also Sweden's Volvo, had previously asserted its commitment to the UK factory, dismissing rumors of a potential relocation of production to the U.S. At that time, Lotus emphasized that the UK remains central to the brand, housing its sports car manufacturing, global design center, motorsport operations, and engineering facilities, while also serving as its largest European commercial market. The company had invested significantly in R&D and operations in the UK over the preceding six years and reiterated its commitment to its British heritage, customers, employees, dealers, and suppliers.