Lotus Might Build Cars at Volvo Factory In America

 Over the weekend, multiple reports emerged suggesting Lotus might shut down its historic Norfolk plant and cease car production in the United Kingdom. However, those rumors have since been denied: “Lotus Cars is continuing normal operations, and there are no plans to close the factory.” The statement followed reports from the BBC and Financial Times, which alleged that the Geely-controlled sports car brand was planning to end UK production, putting 1,300 jobs at risk.

While the British plant isn’t shutting down, Lotus has acknowledged it’s “actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.” According to Automotive News, CEO Feng Qingfeng said during the company’s Q1 earnings call last week that Lotus is considering building cars in the United States to avoid tariffs: “We are trying to leverage our U.S. strategy to catch up the losses due to the tariff hike. We believe that localization is a feasible plan.”

Building an entirely new factory from the ground up isn’t realistic for a low-volume brand like Lotus. Instead, Automotive News claims that the Emira sports car and electric models could be assembled at Volvo’s factory in South Carolina. Opened in 2018, the Ridgeville facility has a maximum annual capacity of 150,000 vehicles but has never reached that figure. It currently produces only the EX90 and Polestar 3, following the discontinuation of the S60 in June last year.

In May, Volvo announced that it would reduce its workforce at the plant by 5%, approximately 125 of the 2,500 employees. However, it still plans to create 4,000 new jobs and increase production in the long run. It remains unclear whether parent company Geely has made a final decision to manufacture Lotus models at the 2.3 million-square-foot Ridgeville site.