Lotus: “no plans” to close UK factory
Sports car manufacturer Lotus has revealed that it has “no plans” to shut any factory, following news that the company was considering a new site in the US. The company, based in Hethel in Norfolk, had considered ending its production there, according to the BBC, potentially at a cost of 1,300 jobs.
But in a statement on X, it revealed that this is not the case.. “Lotus Cars is continuing normal operations, there are no plans to close any factory,” the statement said, adding that it was “actively exploring” options.
The company, along with its Chinese owner Geely, met with Business Secretary Jonathan Reynolds who said that he was “was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.”
The Financial Times initially reported the story but insiders told the BBC that the situation is under review, saying that Lotus would consider production in the US. Earlier this year, production at Hethel was temporarily suspended following disruptions caused by US tariffs on cars.
The US is a major market for the brand but tariffs threaten its business as sellers are required to pay 25% on imports on cars and car parts. The governments of both the UK and US have agreed to lower tariffs on cars built in the UK to 10%.
The agreement only comes into effect on 30th June, meaning that manufacturers have so far had to pay the initial 25% tariff.
“Lotus remains committed to the UK, to our customers, employees, dealers, suppliers, as well as our proud British heritage,” the company said.
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