Geely-owned sportscar maker Lotus is to cut up to 550 jobs across its UK manufacturing business.

The company said the restructuring plan followed a review of its business plans. Recently, the firm denied that it planned to close its UK manufacturing plant.

"We believe this is necessary in order to secure a sustainable future for the company in today's rapidly evolving automotive environment," Lotus said in statement.

The company faces a number of major challenges, including the impact of higher US import tariffs on its US sales.

Reports also suggest that the company plans to increase integration globally across the group, while exploring opportunities to diversify its business model, with the possibility of contract manufacturing.

Lotus currently employs around 1,300 employees in Britain.