Lotus Turns to Building Cars for Rivals to Survive Tough Times

Lotus is navigating another rough chapter. The iconic British sports car maker cut 550 jobs—40% of its workforce—at its Hethel headquarters in 2025 after posting a staggering $1 billion net loss the year before. To steady the ship, Lotus began hunting for a partner willing to let it manufacture vehicles under another brand’s name.

That search just got real. Lotus signed a non-binding Heads of Terms agreement with Zenos Cars, a boutique sports car builder. If the deal solidifies, Zenos could start producing cars at Lotus’s new Hethel Performance Hub in Norfolk, England. Zenos showed up at the facility’s grand opening with its fresh E10RZ sports car on display.

There’s no timeline yet—no final manufacturing deal is in place—but the hub combines engineering, production, and a test track under one roof. Lotus called the site “a nucleus of high-performance automotive innovation” for the UK.

Zenos, founded in 2012 by ex-Lotus and Caterham veterans, focuses on lightweight performance machines. 2 seconds, and weighs just 1,742 pounds thanks to an aluminum spine and carbon fiber body. Meanwhile, Lotus is also turning to hybrid powertrains, planning three plug-in hybrids to reach markets like Italy, Spain, and Saudi Arabia where EV adoption is slower.

But the road hasn’t been easy for either company: Zenos went into administration in 2017 before bouncing back, and Lotus continues to struggle with its identity as a niche lightweight carmaker pushing into electric SUVs—a segment where bigger players already dominate.