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.

Lotus is under pressure to act quickly, as the U.S. is its fifth-largest market. Emira exports were halted in April due to steep tariffs imposed by the Trump administration. Feng confirmed that deliveries will resume in August, when the 2026 Emira is scheduled to arrive at dealerships. The Eletre SUV and Emeya sedan, both electric and made in China, are currently unavailable in the U.S. The Eletre briefly reached American shores, but sales were suspended due to tariffs on Chinese EVs.

Photo by: Lotus

Regardless of what happens in the U.S., Lotus insists it won’t shut down its UK operations: “We have invested significantly in R&D and operations in the UK over the past six years. Lotus remains committed to the UK—and to its customers, employees, dealers, suppliers, and proud British heritage. The UK is the heart of the Lotus brand—home to our sports car manufacturing, global design center, motorsport operations, and Lotus Engineering. It is also our largest commercial market in Europe.”

Shutting down the Norfolk site would be another setback for Britain’s shrinking car industry. UK car production in May dropped by a third compared to the same month in 2024, reaching a 76-year low. Only 49,810 cars were built, the lowest May figure since 1949, according to the Society of Motor Manufacturers and Traders (SMMT).

Beyond Lotus, other British automakers, such as Jaguar Land Rover and Aston Martin, have also scaled back U.S. exports due to rising tariffs. The SMMT reports that shipments to the U.S. fell by a whopping 55.4% in May compared to the same month of last year, primarily due to these trade barriers. The U.S. share of exports decreased from 18.2% to 11.3%.