Sportscar maker Lotus Cars to cut 200 jobs as accounts reveal heavy losses

Sportscar-maker Lotus Cars is to cut up to 200 jobs in a move it claims will make it "leaner and more competitive long-term".

The manufacturer, which is based at Hethel in Norfolk, described the move as a "restructure of its workforce" and said it would work to find new roles for workers where possible.

Lotus is owned by the Chinese car giant Geely, which took a majority stake in May 2017, when it vowed to "unleash the full potential" of the marque, with the ambition to raise production to 10,000 cars a year.

Lotus Cars' most recent accounts, published on Friday, showed that the number of cars the company sold dropped from 1,566 in 2021 to just 576 in 2022.

A note in the accounts explained that the drop in sales was "limited in the second half of the year with the production challenges faced" by the supply chain the automotive sector.

The company lost £145.1m in the year to 31 December 2022, up from losses of £86.6m a year before.

A Lotus spokesman confirmed the job cut plans, and said: "Lotus Cars' proposal for a reorganisation of its business is to ensure that the right organisational structure is in place for us to achieve our business goals and to build a strong, sustainable future.

"This includes a restructure of its workforce, which may involve the loss of up to 200 jobs.

"Wherever possible, we will look to support the redeployment of staff and plan to look for ways to retain specific skills and knowledge within the business, despite the proposed cuts. We believe this is vital to ensuring the organisation is leaner and more competitive long-term."

The firm said it expected 2023 to be a "record year for vehicle production".

The spokesman added: "Our shareholders have made a clear commitment that the UK, having invested over £500m into Lotus Cars’ UK R&D [research and development] and operations and created many new jobs at our new London headquarters, as well as in Norfolk, and this shows the long-term commitment to the brand in the UK."

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