Lotus has confirmed its Hethel factory in Norfolk is critical for its global competitiveness, reassuring Business Secretary Jonathan Reynolds it has no plans for closure. This commitment comes as the sports car maker prepares to resume production, dispelling fears of a potential move to the US and securing 1,300 jobs.
The urgent Sunday meeting aimed to clarify Lotus’s intentions after it emerged that the carmaker was considering ending production of its sports cars in the UK and moving it to the US, partly due to US tariffs. A Department for Business and Trade spokesperson stated that Reynolds “was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.”
Lotus had paused production in mid-May, but with US tariffs due to be reduced to 10% on Monday, the economic environment for Lotus’s significant exports to the US has dramatically improved, allowing for a resumption of normal operations. Lotus states it is “actively exploring strategic options to enhance efficiency and ensure global competitiveness.”
Despite earlier discussions by Lotus Technology’s CEO about exploring US “localisation plans,” the immediate future sees the Hethel plant continuing its operations, producing both the Emira sports car and an electric hypercar. The government’s broader commitment to supporting the automotive sector further underpins this positive outlook.