Up to 270 people will be laid off at Lotus. The company directly cited tariffs as part of its reasoning, citing “volatile and evolving market conditions, including the US tariffs.” Tariffs are not solely responsible but were clearly a significant contributing factor in the company’s decision to lay off employees six months after it warned of coming struggles. The company posted a $200 million loss in Q1 and Q2 of 2024.
Tariffs And Slow Sales Are Killing Lotus
Lotus is owned by Geely, the Chinese auto conglomerate also in charge of Volvo and Polestar. In a statement to the BBC, the automaker said it “will look at greater resource sharing and collaboration in technology, engineering, and operations” to survive. Lotus has previously cut jobs: 94 employees lost their jobs in November 2024. You can read Lotus’ full statement to the press below.
Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions, including the US tariffs and shifting consumer demand for sports cars. The company plans to increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group. It will look at greater resource sharing and collaboration in technology, engineering, and operations.
TopSpeed’s Take
Lotus has two problems right now. For one, its new and very expensive Eletre electric SUV isn’t very popular. It’s expensive and its range and performance figures aren’t stacking up to competitors. Lotus put a lot of money into developing this electric architecture, parts of which would have no doubt carried over into the upcoming Type 137, the company’s planned all-electric Elise replacement. The Emira, meanwhile, is also subject to slow sales in the face of popular competitors, like the Cayman.
Tariffs are also wrecking Lotus’ margins, and it is unclear from one day to the next what tariffs will be levied where as President Trump’s whims continue to cast doubt on the economy. Buyers were recently told the company simply couldn’t afford to import 2025 models as a result of tariffs. Right now, it doesn’t look as if Lotus can continue to survive.
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