Carmarker Lotus: ‘No plans’ to shutter UK factory despite fears of closure
Lotus has said it has ‘no plans’ to close its Norfolk factory despite media reports that the carmaker may move production to the US.
Reports on Friday suggested that the company’s Hethel factory – which employs 1,300 people – could be closed within a month, but Lotus said it is “continuing normal operations” in a statement.
“The UK is the heart of the Lotus brand – home to our sports car manufacturing, global design centre, motorsport operations, and Lotus Engineering. It is also our largest commercial market in Europe.
“Lotus Cars is continuing normal operations, and there are no plans to close the factory. We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market,” the company said.
UK business secretary Jonathan Reynolds is expected to speak to Lotus on Sunday about government support for the brand, according to The Financial Times.
The carmaker, which has been controlled by Chinese manufacturer Geely since 2017, has previously confirmed that production at the Hethel site has been paused since mid-May in an effort to manage supply chain issues resulting from US tariffs.
The US is a major market for Lotus but tariffs have threatened its business model, with imports charged at 25 per cent.
Exports of cars from the UK to the US has halved since ‘Liberation Day’, according to figures released last Friday by the Society of Motor Manufacturers and Traders (SMMT).
“We have invested significantly in R&D and operations in the UK, over the past six years. Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage,” the company said.
Geely has invested around £3bn in new technology to boost the Lotus product range, pledging to overhaul the company and turn it into a “lifestyle vehicle” brand focusing on all-electric vehicles.
City PM has contacted Lotus for comment.