Lotus Plans to Close Norfolk Factory after 59 Years of Operation

A Shift in Production Hub: Lotus to Focus on US Market

UK-based sports car manufacturer Lotus, owned by Chinese conglomerate Geely, is set to close its factory in Hethel, Norfolk, marking the end of operations at a site that has been in place for 59 years. The company has confirmed that it will not be closing any factories, but instead aims to optimize production and increase efficiency in a rapidly changing market.

The closure has sparked concerns about the future of British manufacturing, as Lotus is credited with being the brand's core location for car manufacturing, design, racing operations, and engineering. Geely stressed its commitment to the UK, stating that it "values Britain as its heartland."

Strategic Shift towards American Market

Geely announced that it plans to increase focus on the US market, with a significant proportion of production reportedly to be transferred to an existing factory in South Carolina. The move aims to overcome tariffs barriers and mitigate losses caused by escalating import costs.

Lotus Chief Executive Officer, Fan Ye Qun, highlighted the importance of localizing production for brands like Lotus that target the premium electric vehicle (EV) segment in the US. "Because America is our primary target market," he stated.

The car that will likely be converted to assembly in this South Carolina factory is the Eletre, an all-electric SUV scheduled to debut later next year with a plug-in hybrid model available following 2026.