by Lotus May Move Production to the USA
The Lotus company is considering closing its factory in Great Britain and moving production to the USA. This decision could lead to the layoff of about 1300 employees. In the first quarter, the company showed weak results: sales fell by 42%, and revenue shrunk to $93 million, which is 46% less than a year earlier. Furthermore, Lotus incurred net losses of $183 million.
Despite financial difficulties, the company plans to introduce its first plug-in hybrid this year. This model will receive a so-called Hyper Hybrid engine, which, according to the manufacturer, will provide a range of over 1100 km. Lotus CEO Qingfeng Feng stated:
We remain attentive to changes in key markets, such as the USA, and are actively evaluating strategic paths to strengthen our presence.
Potential Consequences for the Brand
If production is indeed moved to the USA, it could permanently change Lotus’s image as a British automaker. Previous reports indicate that the company is already facing difficulties, including delays in supplier payments. Furthermore, Lotus customers do not seem interested in fully electric models, forcing the brand to bet on hybrid technologies.
Lotus’s financial problems highlight the difficulty of competing in the modern automotive market, especially for small manufacturers. Moving production could be an attempt to reduce costs and avoid high customs duties, but it also jeopardizes the brand’s traditional identity. The future of Lotus will depend on whether the company can find a balance between innovation and preserving its heritage.
