This weekend, several media outlets reported that Lotus had considered (and may still be considering) relocating to the United States and possibly ceasing production at its British assembly plant, which it has owned since the mid-1960s. The action is in response to tariffs, which remain at 25% despite the government’s recent reversal of course. According to a UK report published last week, the country’s car exports to the United States have dropped by around 50% this year. The new tariff rates will not take effect until the end of June. According to the BBC, Lotus had already been considering the move before the UK government intervened. According to insiders who talked with the television network, Lotus is still “evaluating” the situation. Still, the company’s Hethel assembly plant will continue to operate for the time being. The modest automaker’s only immediate choice is to produce cars in China, where it has a second factory, so this is a desperate move. Geely, Lotus’ parent company, operates the Wuhan facility. Lotus is currently under pressure to keep its latest offerings compliant with US regulations while also continuing to sell in the US, a market it considers critical. A Lotus Emira featuring a V8 engine, produced in the United States, is an unexpected result of this. Although there is some wonderful historical precedent for overpowering British sports cars, Lotus would likely use a Mercedes-Benz biturbo engine and an automatic transmission rather than a Detroit V8. Let’s say we’re open to the idea, even if we’re not sure how it fits with the company’s late founder’s credo, “simplify and add lightness.” Lotus isn’t the only company facing challenges as a low-volume manufacturer. In response to the ongoing trade war, Ineos, a business that produces heritage-style Land Rover Defender knockoffs with modern amenities, hiked prices this year.
