3rd round of Redundancies at Lotus 😞

Lotus Cars job losses as 'volatile market' and US tariffs blamed

Up to 270 jobs are to go due to "evolving market conditions including the US tariffs", Lotus says.

www.bbc.co.uk

 

[cwfg]

They will require a further funding injection soon. They aren’t quite on life support yet but I see them following the footsteps of Aston Martin. Love for the brand (by billionaire enthusiasts) will keep them on life support for a short while but there is only so much money anyone will sink into a brand until eventually can’t be justified, even for love. The question is a simple one, can someone turn it around before the money/love dries up? They’ve lost round 1 on points. Time for a huddle and then there’s at least 1 more round to go I think.

 

[Nick in Sydney]

The UK charges 10% on car parts imported from China although 0% for completed Chinese cars and has done for some time.

I think he was referring to the 25% tariff on USA car imports, not UK. Europe charges a ~30% tariff on Geely EVs, which I assume also applies to Lotus EVs coming from China (10% standard car tariff + 19% Geely EV tariff).

 

[Beachbum]

Reading on another forum someone said they had flown a drone recently over Hethel and counted close to 200 Emiras in the open with covers on.

It's not just the 25% tariff on cars but also the higher cost of tariffs on parts from China.

JCT600 Bradford recently purchased stock direct from Lotus, all look to be preowned and starting to appear on their forecourt. Auto100.co.uk being pushed out?

No idea how good JCT600 are, but they have to be an improvement over Auto100

 

[Eagle7]

Lotus needs to start thinking in practical terms instead of trying to instantly be another Porsche. What they did in Wuhan was a huge and expensive overstep.

What they should do is go back to the basics and make fun cars that people can afford. Hethel should come up with something like the Miata (which ironically was originally based on the original Lotus Elan). Last year Mazda sold 7,489 MX-5 Miatas in 2024, which is within the production range that Hethel can manage. Adding a fun, open-top (and affordable) roadster alongside an Emira would make a nice combo. It can use the same powertrains the Emira uses. An Emira style roadster would sell, but only if it's in the $50k-$70k range with the emphasis on fun, not expensive exotic luxury like they did with the Eletre and Emeya.

They should also add a 4-door sport saloon, in the size of the Mazda 6 which Mazda sold close to 20,000 a year until they discontinued it. That's also something within range of Hethel's production ability if they build that additional facility they were planning there.

Now add dealership locations. Partner with Volvo for service and support. There are currently 282 Volvo dealer locations in the U.S. which would make a huge difference in access and support for Lotus.

Long-term plans, I would put the effort into either contracting with somebody, or designing and building a really good, modern little V6 engine and design matching manual and auto transmissions. I'd even look into possibly licensing the Koenigsegg LST multi-clutch transmission, and make a smaller version for a V6 and turbo 4. That transmission could be used on all models, as it supports both paddle and stick shift. A fast, 9-speed trans would give great range and flexibility for Lotus engine performance, as well as helping to meet gas mileage requirements.

By using intelligent design to create a single V6, turbo 4, and one dual-shift-style transmission that can be used on all models, that maximizes the investment and is more production and cost-efficient.

If Wuhan wants to diddle around with EV's, fine. There's still a very profitable future in ICE vehicles though, and it would be worth it to create their own drivetrain combos. A gorgeous roadster, Emira, and 4-door saloon with a unified engine/drivetrain architecture, partnered with Volvo for dealerships would give Lotus a fighting chance to get established on a solid foundation. If they aim for a yearly production/sales for all those models combined of around 30k-40k a year, planning that for Hethel with the Emira at the top of the price range, the saloon in the middle, and the roadster the most affordable like the Miata, Hethel could survive. Miatas have been consistent sellers for decades, and that's what Lotus needs.

If they don't do something reasonable, I'm afraid they're going to wind up like Alfa Romeo did with the Giulia. It was a brilliant car put together by a great team of enthusiasts, that was then taken over by clueless, disconnected management types who bungled it into oblivion. Trying to be a huge player right out of the gate was a disaster. Stellantis was a mess. I hope Lotus doesn't wind up like that.

 

[Orchardbike]

Reading on another forum someone said they had flown a drone recently over Hethel and counted close to 200 Emiras in the open with covers on.

It's not just the 25% tariff on cars but also the higher cost of tariffs on parts from China.

JCT600 Bradford recently purchased stock direct from Lotus, all look to be preowned and starting to appear on their forecourt. Auto100.co.uk being pushed out?

That’s interesting about Auto100. I have absolutely slated them with Lotus CC, Lotus Escalations and direct to Matt Windle. Don’t know whether that had an effect. Having said that, I’d be equally as nervous buying from JCT as they’ll be the same cars with lots of potential problems. Maybe JCT will give better customer service, but I can’t see them fixing the car issues with Lotus prior to selling them.

 

[cwfg]

Lotus needs to start thinking in practical terms…….

Agree with all of this. Lotus was not only too late the party with SUVs but building the Eletre for Lotus was the equivalent of Nike deciding to make a loafer. It’s just not part of the brand. If they stuck to their core competency of making sports cars they could survive. They bet on the wrong horse unfortunately and now they have started to dilute their institutional knowledge. Soon there’ll be no USP left to leverage.

 

[MiamiBlue]

That’s interesting about Auto100. I have absolutely slated them with Lotus CC, Lotus Escalations and direct to Matt Windle. Don’t know whether that had an effect. Having said that, I’d be equally as nervous buying from JCT as they’ll be the same cars with lots of potential problems. Maybe JCT will give better customer service, but I can’t see them fixing the car issues with Lotus prior to selling them.

Everyone slated Auto100. Cars provided with 1 key, no paperwork or history (not even a V5 document) and with faults. Faults that Auto100 wouldn't even acknowledge and just pointed you towards a Lotus dealer.. it was never going to end well.

JCT600 run most of the Porsche dealers (and other premium brands) up in the North of England, and they do a pretty good job. I have much more trust in them than Auto100. They're a large brand with many dealers, rather than a single located second-hand warehouse of cars with hundreds 1* reviews and horror stories that is Auto100. Why Lotus picked them ..god only knows.

 

[Rupes]

To be fair, Lotus has been staggeringly unlucky since the Emira launch: COVID pandemic, Ukraine war, US and European tariffs on Chinese EVs, and now the tariff war. They just can't catch a break.

Unfortunately they compounded this bad luck with a couple of major strategic blunders and terrible execution.

Strategic blunders: aiming for 100% EV at least five years too early, trying to reposition as a high-end luxury brand too quickly with Evija, Emeya and Eletre, plus a failed attempt to take over sales from the dealer network in the UK

Execution blunders: long list but includes not getting on top of quality control, going to market with software that wasn't ready, and having terrible customer communication and customer care

While I agree with this statement, Lotus is not unique in these global market conditions, and other manufacturers, like Porsche, haven’t wavered in the same way that Lotus has.

A horrible customer experience, limited dealer network, and quality/reliability concerns coupled with everything you mentioned is what I think the real issue is.

 

[Man.v.Cars]

That’s interesting about Auto100. I have absolutely slated them with Lotus CC, Lotus Escalations and direct to Matt Windle. Don’t know whether that had an effect. Having said that, I’d be equally as nervous buying from JCT as they’ll be the same cars with lots of potential problems. Maybe JCT will give better customer service, but I can’t see them fixing the car issues with Lotus prior to selling them.

I spoke to the sales manager there, wanting to know if they'd buy mine, and he said they were correcting all faults before putting them up for sale.

 

[Orchardbike]

I spoke to the sales manager there, wanting to know if they'd buy mine, and he said they were correcting all faults before putting them up for sale.

I was told lots of things by Auto100……non of which turned out to be true.

 

[Man.v.Cars]

I was told lots of things by Auto100……non of which turned out to be true.

I meant JCT600

 

[John_Matrix]

Hethel make one car now. It’s a big facility for one car. There is simply no way they are going to invest in more petrol powered models with the ban looming. It’s arguably too late. Best we can hope for is a glass roof on the current car and maybe a Cup version based on the i4.
I think on the factory tour they said the US was their 2nd or 3rd biggest market. What a disaster for them. I was just listening to the intercooler podcast. Lots of chat about McLaren, RR, Bentley. No mention of Lotus at all.

 

[Man.v.Cars]

I said on here a while ago that I wouldn't be surprised if Geely had Lotus go into administration, buy everything up for pennies on the £, write off all the debt, chuck all warranties for existing owners and start again. It's what I would do.

 

[ShootingSight]

My thought was that Geely wants to sell Chinese EVs to the world, but that they don't have a recognized name, so they bought Lotus as the cheapest established car company out there, just to get the Lotus badge they could slap on their Chinese product. That makes it a lot easier to break into the world market. Any IC vehicles made in England are a distraction - ok to have around as long as it is paying for itself, but not their focus, and nothing they are willing to take a loss on, or invest in.

 

[cwfg]

Well if they collapse then there will be an opening in the market for more independents to service and maintain the existing stock. Fortunately Toyota will be around for engine parts but the rest could be problematic. As for warranties, they are insurance backed so could still be honoured so long as parts and shops exist. Happened to me with MG back in the day and just look at DeLorean… parts still exist to this day and there were as many of those as there are currently Emiras sold.

 

[Lotustoronto]

My take on why Geely bought Lotus is what @ShootingSight mentioned. Just wanted to add that enthusiast want Lotus to succeed, they have the history in Motorsport as well. Edit - I don't think any other Chinese startup would get as much media attention as Lotus does. This alone is worth the keeping it going. I think Geely looks at Hethel as the main marketing pull to sell their Chinese EV's, for that reason alone I don't think they will pull out of the UK. If anything they will continue to evolve the Emira. I could see a targa / convertible version coming down the pipeline alongside the EV sports car. I imagine the EV sportscar will sell well in china. However, they continue to get the marketing wrong in so many aspects. The idea's are correct, the implementation is dreadful. I think Hethel continues on for some time and I am hoping they continue to push into motorsport. Perhaps Le Mans could be next.

 

[Mongy]

Not for cars. 25% on cars.

UK could be another story but here in USA the Lotus are very rare to find. The price for a new one starts on $104k before any tariffs was announced. A used one is around $98k. I got mine for $92,800 with 1800 miles because I know the salesman. But at the same time the resale price is very high. Not bad for us.

 

[Man.v.Cars]

UK could be another story but here in USA the Lotus are very rare to find. The price for a new one starts on $104k before any tariffs was announced. A used one is around $98k. I got mine for $92,800 with 1800 miles because I know the salesman. But at the same time the resale price is very high. Not bad for us.

£70k from a dealership is just above UK prices. The spec of mine now is £106,750/$142,00 and I'd expect to put it up for £65k/$86,500 to get around £60k/$80k. There are fewer used here in the last 12 months, 87 a year ago and now 22 on the main selling website Autotrader. Prices are edging up a little bit.

 

[F1 SML8R]

UK could be another story but here in USA the Lotus are very rare to find. The price for a new one starts on $104k before any tariffs was announced. A used one is around $98k. I got mine for $92,800 with 1800 miles because I know the salesman. But at the same time the resale price is very high. Not bad for us.

This must be in a very specific geographic part of the US for you.

I'm on the west coast and track used car trading values and discounts on new cars and this is simply not the case in most of the US. There have been documented cases of used cars (essentially new) trading for mid $80k (see BAT - Bring a trailer) and new cars getting $5k off MSRP with not a lot of effort (I got more on my recent purchase).

The reality is these cars are rare, but there's no correlation between exclusivity and value in the case of Lotus cars. BTW, all previous models played out identically. And before anyone says what about elises and exiges? Sure, but you had to wait 20 years to get your money back. That's not appreciation, that's called "time value of money" aka inflation. I'm sure my emir will trade for what I bought it for in 20+ years as well.

 

[Woodman1]

I bought mine from Auto100, I wouldn't say it was the best experience I've ever had but I was happy with what I paid. I did ring them
the next day though, to let them know that at 70mph the windows whistled, which I found very annoying, their response was drop your window
a tad, Booked it in to JCT600 Bradford, new door seals will be fitted both sides under warrant 6th May. Other than that the car has been
Faultless, Me and my 21 year old son went up to Scotland for a week the car was amazing, We both shared the driving, he loved it
and is now looking for a manual car, glad i bought this instead of an Audi r8