Carmaker Lotus 'to end production' in the UK after 60 years putting 1,300 jobs at risk

In a fresh blow to the UK’s motor industry, the British sports carmaker will halt production after struggling to pay its suppliers in recent weeks, reports claim.

This has seen production at Lotus’ Hethel plant in Norfolk pause for the last month.

Now, as per a new report by the Financial Times, the Chinese-owned company will end production in the UK for good as soon as next year.

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Lotus chief Matt Windle refused to be drawn on reports, branding them “rumours.”

Chinese company Geely took a 51% stake in Lotus in 2017, with the move being seen as a lifeline for the company after years of losses at the time.

Lotus, which was founded in London in 1966, ceasing production would mark another blow to the UK’s car industry.

Car production hit its lowest levels since 1949 in May after Donald Trump launched a trade war against all vehicles made outside of the US.

In the year to date, production is down by almost 13% on 2024, to 348,226, the lowest since 1953.

The SMMT said the reduction was mainly due to ongoing model changeovers, restructuring and the impact of US tariffs.

A total of 47,723 cars rolled off factory lines last month, while commercial vehicle output was down by more than 50% to 2,087 units.

Car production for export fell by 27.8%, with shipments to the EU and US, the UK’s two largest markets, down by 22.5% and 55.4% respectively.

The SMMT said rapid action on energy costs and an increased ability to access key overseas markets, as well as additional measures to energise domestic demand, could put the UK on course to reclaim its place in the top 15 automotive manufacturing nations, for the first time since 2018.

Mike Hawes, SMMT chief executive, said: “While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginning of some optimism for the future.

“Confirmed trade deals with crucial markets, especially the US and a more positive relationship with the EU, as well as Government strategies on industry and trade that recognise the critical role the sector plays in driving economic growth, should help recovery.

“With rapid implementation, particularly on the energy costs constraining our competitiveness, the UK can deliver the jobs, growth and decarbonisation that is desperately needed.”