RE: Lotus confirms additional job losses at Hethel
RE: Lotus confirms additional job losses at Hethel
Friday 29th August

Lotus confirms additional job losses at Hethel

'Fully committed to the UK' becoming increasingly meaningless as 550 more employees will go from factory


At what point, you might reasonably ask, does Hethel, Lotus’s historic home and allegedly the hub of its sports car operations, become an empty shell, sustained merely to vindicate the idea that the firm has a meaningful presence in the UK? Well, with news that the manufacturer is to shed an additional 550 jobs before the end of the year, we must fast be approaching that moment - if we haven’t already sailed beyond it. 

The suggestion that Hethel currently accommodates 1,300 workers - the total previously claimed by Geely, but privately debunked by people familiar with the matter - means that the factory responsible for producing the Emira is certainly now going to be operating with many fewer than 1,000 employees. Which seems contrary to the idea of it being a fully-fledged centre for sports car production, motorsports activities and engineering consulting operations - all of which Geely says are still occurring behind its walls. 

Confirmation of the job losses comes not just in the wake of rumours about Lotus closing the Hethel gates permanently - a rumour it strongly denied at the time - but also the more recent departure of Matt Windle, the beleaguered head of Lotus Cars Europe. The firm’s reluctance to officially confirm or introduce his replacement is likely telling, as is the “review of Lotus Cars' business objectives in line with the current market conditions" that presumably occurred at the same time. 

On the subject of its conclusions, the official statement continued: “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.” Additional press coverage suggests that Lotus representatives met with local MPs on Thursday morning to discuss the implications of its ‘restructuring’ with the cuts expected to take effect in December. 

In response, South Norfolk MP Ben Goldsborough is quoted as saying: "While any job losses are concerning, it is important to recognise the worst-case scenarios, fairly recently on the table, have been avoided: that being the complete closure of the factory.” But with precious little evidence that Lotus Cars Europe is moving towards a more sustainable position - or that the prevailing conditions it calls out will adjust to better suit its existing lineup - the idea that Hethel is not inevitably heading toward that fate seems absent of any kind of sure footing. 

For the manufacturer’s part, it reckons “it is actively exploring future growth opportunities to diversify Lotus Cars' business model, including through third-party manufacturing." Frankly, and quite obviously, we would accept any solution that sees hard-working and skilled people remain in their jobs - and for Hethel to remain open as a going concern - but now more than ever it will require more than words for the clouds over Norfolk to part. 


Author
Discussion

Bernt Tuakrisp

Original Poster:

189 posts

216 months

Thursday
quotequote all
Buying a Fisker looks less risky at this point, at least they are incredibly cheap.

Rick101

7,088 posts

166 months

Thursday
quotequote all
Awful news. Sadly I really don't see a way back for Lotus Sports cars now.

Panamax

6,685 posts

50 months

Thursday
quotequote all
What a mess.

kevinon

1,919 posts

76 months

Thursday
quotequote all
Big corporates do what big corporates do.

The choreography is depressingly familiar.
Promise what we / Govt want to hear. Big PR splash. Push back vigorously at questions. Deny.
Row back the promises when it can't be denied. Divert with PR guff about commitment.

Who's to say that Geeley won't end up with just a brass name plate on a serviced office in Hethel?
Just like corporates have a plate on a Luxembourg office for tax evasion.


sad.


Mark_Blanchard

953 posts

271 months

Thursday
quotequote all
Lotus has always had a rocky road. This is just another rather horrible one. But some how it keeps on going and I'm sure it will survive.

The Emira is a fantastic car and probably the best Lotus they've made.

Julian Thompson

2,633 posts

254 months

Thursday
quotequote all
So what does cutting 50% of the workforce mean? What’s going and what’s staying?

Panamax

6,685 posts

50 months

Thursday
quotequote all
I can't help thinking the road would be less rocky if they built cars people actually want to buy at a price they're willing to pay. Unless the product is relevant to some viable market, somewhere, it's tough to sell 'em.

All very sad.

highway

2,389 posts

276 months

Thursday
quotequote all
Sadly predictable. Emira production moves to the US so they avoid tariffs on their biggest market?
If Geely decide they don’t want to be in the Lotus business anymore does the warranty still get honoured?

ThingsBehindTheSun

2,235 posts

47 months

Thursday
quotequote all
Mark_Blanchard said:
Lotus has always had a rocky road. This is just another rather horrible one. But some how it keeps on going and I'm sure it will survive.

The Emira is a fantastic car and probably the best Lotus they've made.
How have Lotus managed to do this, they had a car that had a two year waiting list and then completely messed it up.

Maybe the Chinese only wanted the name, like with MG and don't actually care as they only want to produce EVs?

ManyMotors

921 posts

114 months

Thursday
quotequote all
Geely has its limits even if they're not expressed. Limits also exist for CYVN. Bad investments need to be addressed.

Wadeski

8,684 posts

229 months

Thursday
quotequote all
The emira should have worked, but they manage to not only snatch defeat from the jaws of victory (covid was misfortune, appearing to have contempt for customers is habit) but also seem to have made the least popular electric cars on the market?

I wish they would sell the Elise tooling to Caterham.

Frimley111R

17,344 posts

250 months

Thursday
quotequote all
When the US add massive tariffs and essentially make cars unsaleable there, that's a huge blow for the Emira production.

Let's not forget Lotus is high profile on PH, but elsewhere all other manufacturers are struggling with even greater problems and far higher levels of redundancies and losses. Companies aren't social services, if they lose money they have to cut costs or sell more, and that's not easy for anyone. If you look at Porsche, Lotus's issues are a drop in the ocean.

PorkerHam

151 posts

58 months

Thursday
quotequote all
This is really miserable. I can't see them moving Emira production to the states tbh, they don't make enough of them and they are unlikely to still be making ICE cars in a few years time.

I have always loved Lotus, but sadly it's looking like it's just going to be a badge for SUVs now.

Completely accept that they have never made anything that the mass market wanted, but they still made some wonderful cars.

theicemario

1,266 posts

91 months

Thursday
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How come they haven't launched an Emira Roadster?

dunnoreally

1,314 posts

124 months

Thursday
quotequote all
Reminds me of Longbridge. Keep it open with a skeleton crew as a "development facility" just for marketing purposes

I remember people saying when the takeover was announced that the fat crossovers would finance the interesting stuff. I was sceptical back then, and this is one of those cases where it does not feel good to be proven right.

Vee12V

1,393 posts

176 months

Thursday
quotequote all
theicemario said:
How come they haven't launched an Emira Roadster?
That was never the plan partly because the Evora chassis, on which the Emira is based, wasn't prepared for this either.

Justin-ow582

473 posts

121 months

Thursday
quotequote all
It's such a pity, but if you'e a small niche company that has to please the parent company, job losses are the way to save cash if there's a lack of demand.

Contrast to Ford Motor Co who just plod forwards in denial ramping up billions of dollars of debt, according to t'internet:
Net income/loss for the twelve months ending March 31, 2025 was $13.597 billion
Net income/loss for 2024 was $5.894 billion, a 36.15% increase from 2023

Ribbit2112

23 posts

15 months

Thursday
quotequote all
For real no one sow this coming ??? Absolutely not trying to offend anyone, but some of you people here on piston heads seem really naïve.

Frimley111R

17,344 posts

250 months

Thursday
quotequote all
Vee12V said:
theicemario said:
How come they haven't launched an Emira Roadster?
That was never the plan partly because the Evora chassis, on which the Emira is based, wasn't prepared for this either.
That's not correct. The Evora didn't have a convertible version simply because Lotus didn't have the budget and by the time Geely took over it was working on the Emira. I suspect there's just too much going on and there's only so much resource available.

As an Emira owner I hope they don't make one. I've seen an Ai version and it looks stunning. If they make one there's no way I could afford one! hehe

Turn7

24,851 posts

237 months

Thursday
quotequote all
Wadeski said:
I wish they would sell the Elise tooling to Caterham.
And then a new S1 clone would £135k biggrin