Over the weekend, a number of experiences emerged suggesting Lotus would possibly shut down its historic Norfolk plant and stop automobile manufacturing in the UK. Nonetheless, these rumors have since been denied: “Lotus Automobiles is continuous regular operations, and there are not any plans to shut the manufacturing unit.” The assertion adopted experiences from the BBC and Monetary Occasions, which alleged that the Geely-controlled sports activities automobile model was planning to finish UK manufacturing, placing 1,300 jobs in danger.

Whereas the British plant isn’t shutting down, Lotus has acknowledged it’s “actively exploring strategic choices to reinforce effectivity and guarantee world competitiveness within the evolving market.” In line with Automotive Information, CEO Feng Qingfeng mentioned through the firm’s Q1 earnings name final week that Lotus is contemplating constructing automobiles in the US to keep away from tariffs: “We try to leverage our U.S. technique to catch up the losses because of the tariff hike. We consider that localization is a possible plan.”

Photograph by: Lotus

Constructing a wholly new manufacturing unit from the bottom up isn’t sensible for a low-volume model like Lotus. As a substitute, Automotive Information claims that the Emira sports activities automobile and electrical fashions could possibly be assembled at Volvo’s manufacturing unit in South Carolina. Opened in 2018, the Ridgeville facility has a most annual capability of 150,000 automobiles however has by no means reached that determine. It at present produces solely the EX90 and Polestar 3, following the discontinuation of the S60 in June final 12 months.

In Might, Volvo introduced that it could cut back its workforce on the plant by 5%, roughly 125 of the two,500 staff. Nonetheless, it nonetheless plans to create 4,000 new jobs and improve manufacturing in the long term. It stays unclear whether or not mum or dad firm Geely has made a remaining resolution to fabricate Lotus fashions on the 2.3 million-square-foot Ridgeville web site.

Lotus is below strain to behave rapidly, because the U.S. is its fifth-largest market. Emira exports had been halted in April as a consequence of steep tariffs imposed by the Trump administration. Feng confirmed that deliveries will resume in August, when the 2026 Emira is scheduled to reach at dealerships. The Eletre SUV and Emeya sedan, each electrical and made in China, are at present unavailable within the U.S. The Eletre briefly reached American shores, however gross sales had been suspended as a consequence of tariffs on Chinese language EVs.

Photograph by: Lotus

No matter what occurs within the U.S., Lotus insists it gained’t shut down its UK operations: “Now we have invested considerably in R&D and operations within the UK over the previous six years. Lotus stays dedicated to the UK—and to its clients, staff, sellers, suppliers, and proud British heritage. The UK is the center of the Lotus model—dwelling to our sports activities automobile manufacturing, world design heart, motorsport operations, and Lotus Engineering. Additionally it is our largest industrial market in Europe.”

Shutting down the Norfolk web site can be one other setback for Britain’s shrinking automobile business. UK automobile manufacturing in Might dropped by a 3rd in comparison with the identical month in 2024, reaching a 76-year low. Solely 49,810 automobiles had been constructed, the bottom Might determine since 1949, in response to the Society of Motor Producers and Merchants (SMMT).

Past Lotus, different British automakers, equivalent to Jaguar Land Rover and Aston Martin, have additionally scaled again U.S. exports as a consequence of rising tariffs. The SMMT experiences that shipments to the U.S. fell by a whopping 55.4% in Might in comparison with the identical month of final 12 months, primarily as a consequence of these commerce limitations. The U.S. share of exports decreased from 18.2% to 11.3%.