- Financial Crisis and Declining Sales
- The Decision to Move Production: Economic Pressures and Market Changes
- Social and Industrial Implications
- Shift Toward Hybrids: Responding to Market Changes
- Hyper Hybrid Technology: Exceptional Driving Range
- Geely’s Strategy: Localizing Production and Strengthening Global Presence
- Lotus’s Future: Between Losing British Identity and Growth Opportunities
- Challenges Ahead
- A New Era for Lotus
The iconic British manufacturer Lotus is facing unprecedented challenges that threaten its identity and future. Recent reports indicate that its parent company, Geely, is seriously considering moving Lotus car production from the UK to the United States—a move that could end the era of the “British Lotus” and open a new chapter in the history of this legendary sports car brand.
Financial Crisis and Declining Sales
Lotus had a difficult start to 2025, delivering only 1,274 cars in the first quarter—a sharp 42% drop compared to last year. Revenues fell to just $93 million, down 46% from the same period last year, and the company recorded net losses of $183 million. These figures reflect a real crisis threatening the company’s presence in the luxury sports car market.
The Decision to Move Production: Economic Pressures and Market Changes
Faced with these challenges, Geely’s plan to move Lotus production from its historic Hethel plant in the UK to the Volvo plant in Ridgeville, South Carolina, USA (where the EX90 and Polestar 3 are currently produced) is gaining traction. The move aims to bypass US tariffs (despite a trade agreement between the UK and US) and leverage America’s advanced infrastructure to boost Lotus’s competitiveness in the world’s largest luxury sports car market.
Social and Industrial Implications
Closing the historic Hethel plant would result in the loss of about 1,300 jobs in Britain, raising concerns among workers and brand enthusiasts who see Lotus as a symbol of British industrial identity. Although Geely has not officially confirmed the decision, several reports suggest it is nearly finalized, especially as the company has recently struggled to pay suppliers.
Shift Toward Hybrids: Responding to Market Changes
One of the main reasons for Lotus’s sales decline is weak demand for fully electric cars. CEO Qingfeng Feng acknowledged that “a pure electric sports car won’t attract much attention right now.” Therefore, Lotus is preparing to launch its first plug-in hybrid model later this year, featuring the 900-volt Hyper Hybrid EV technology announced last year.
Hyper Hybrid Technology: Exceptional Driving Range
The new Hyper Hybrid technology represents a qualitative leap in hybrid cars, offering a driving range exceeding 1,100 kilometers (684 miles)—twice that of the Lotus Eletre EV (which ranges between 409 and 600 km). This technology is expected to be used in Lotus sports cars and family models like the Eletre and Emeya, giving the company a chance to regain the trust of customers seeking practical solutions that combine sporty performance with efficiency.
Geely’s Strategy: Localizing Production and Strengthening Global Presence
Observers believe moving Lotus production to America aligns with Geely’s strategy to boost the brand’s presence in global markets, especially the US, which is a key growth hub for luxury brands. Localizing production in America gives Lotus a competitive edge against tariffs and enhances its prospects for future expansion, particularly with rising demand for hybrid and luxury vehicles in North America.
Lotus’s Future: Between Losing British Identity and Growth Opportunities
While moving production to America may cost Lotus part of its British identity, it could be the only option to save the company from financial collapse. With Geely developing advanced hybrid technologies and expanding production networks, Lotus may succeed in regaining its status as a global sports icon. However, this move will remain controversial among traditional brand enthusiasts and advocates of industrial change.
Challenges Ahead
There are still logistical and legal challenges to implementing the production move, such as retraining workers, relocating production lines, and ensuring the manufacturing quality that Lotus has been known for decades. The loss of 1,300 jobs in Britain will also put political and social pressure on both Geely and Lotus.
A New Era for Lotus
Amid rapid changes in the global automotive market, Lotus stands at a critical crossroads: either cling to its British heritage and risk shrinking, or adopt a new global strategy under Geely’s leadership that allows it to survive and compete in the luxury sports car market. The big question remains: Will this transformation restore Lotus’s former glory, or will it erase what’s left of its original identity?
With this radical shift, Lotus enters a new phase that could redefine it as a global sports brand. Success, however, will depend on Geely’s ability to balance industrial innovation with preserving Lotus’s rich legacy.
