TOUGH CUTS
Iconic British car brand axes HUNDREDS of jobs after Trump’s tariff blitz in bid to survive ‘volatile’ times
Prime Minister Sir Keir Starmer has reassured those in the industry
AN ICONIC British car brand has announced it will axe hundreds of jobs in "volatile" times amid US President Donald Trump's tariffs.
The manufacturer said it will cut up to 270 jobs, but promised it is "committed to the UK".
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The Lotus Group - which builds luxury sports cars and electric vehicles - made the shock announcement yesterday.
Rising online car sales and the soaring cost to physically run the sites to sell the vehicles has contributed to the struggles of the industry.
But Trump's introduction of 25 per cent tariffs on car imports into the US has heaped even more pressure on brands.
Britain sends one-sixth of all the cars it builds each year to the US.
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These include the popular Minis, Land Rovers and Range Rovers, McLarens and Aston Martins, and Rolls-Royces.
These are worth around £8 billion for more than 100,000 cars a year.
According to the Institute for Public Policy Research, the US portion of the car industry has around 25,000 jobs.
Prime Minister Sir Keir Starmer reassured those in the industry that he's "got your backs" but this has done little to ease fears.
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The Lotus Group's HQ is located in Hethel, near Wymondham, in Norfolk.
A spokesperson said: "The proposed restructuring is vital to enhance our competitiveness in today's market.
Brits count cost of Trump’s global trade chaos as UK loses tariff edge over EU
By Ashley Armstrong
YESTERDAY’S fresh market slump on Wall Street reflects a realisation that — compared with the start of last week — the global economy is in a much more perilous state.
Yes, Donald Trump backed away from a full-blown trade war when he chose to pause the most punitive tariffs on all countries, bar China, for 90 days.
But there is still a ten per cent levy on exports to the US from almost every country in the world, suppressing trade and hurting supply chains.
There is also huge uncertainty about the threat of the hefty tariffs being reasserted in 90 days, or Trump flip-flopping once again and making tariffs more severe.
This makes it impossible for companies to invest, make decisions or even forecast their profits.
Meanwhile, the world’s first and second biggest economies are in a tariffs death match.
"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."
It comes after Trump announced the new import taxes on cars from April 2.
He claimed it would lead to "tremendous growth" for the industry.
However experts say it will likely lead to a temporary shutdown of significant production in the US and strain relations with other countries.
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Why are so many car dealerships closing down?
By Summer Raemason
According to Business Rescue Expert there are multiple reasons why car dealerships are folding across the UK.
The first major factor is rising online car sales which are beating in-person sales at dealerships.
With an extensive range of comparison and second-hand sites to chose from, may car buyers don't even step foot into a dealership anymore.
Secondly, the actual cost to physically run the sites has soared.
Rent, wages and energy bills have all been increasing for roughly the past five years, putting many out of pocket.
Car manufacturing across the globe was also hit by a semiconductor chip shortage in 2022 which made it difficult to produce new motors.
The high demand with limited supply created a backlog, which although has eased, is still having an impact on the industry.
A third reason for recent closures is the shift to electric cars.
They are becoming more popular, given the Government initiative to be Net Zero in 2050.
The industry is also affected when companies merge or are bought by rivals.
This may lead to some independent names falling victim to the ongoing spate of closures.