Sportscar maker Lotus has stated that it currently has no intentions of shutting down any of its factories. This comes after reports that the company was considering establishing a new plant in the United States.
According to sources within the company, there were discussions about potentially ending production at the Hethel plant in Norfolk, which could result in 1,300 job losses. However, in a statement on X, Lotus clarified that they are not planning to close any factories and are actively exploring options in the global market.
The company, along with its Chinese owner Geely, met with Business Secretary Jonathan Reynolds and assured him that they are committed to their UK operations and have no plans to shut down the Hethel plant. This statement comes after reports from the Financial Times claimed that Lotus was considering moving production to the US due to disruptions caused by tariffs on car imports.
The US is a significant market for Lotus, but the 25% tariffs on car and car parts imports have posed a threat to their business. However, a recent agreement between the UK and US governments will lower the tariffs to 10%, which will come into effect on June 30th.
Lotus emphasized their dedication to the UK, their customers, employees, dealers, suppliers, and British heritage. Meanwhile, Labour MP Ben Goldsborough expressed his concerns about the rumors of a potential closure of the Hethel facility and reassured that he will do everything in his power to ensure that Lotus continues to thrive in Norfolk.
BBC East Political Editor Andrew Sinclair revealed that government officials and ministers have been in talks with Lotus over the weekend, indicating that there is a level of concern about the situation. The UK government has been working towards securing a favorable deal for British car manufacturing, and losing a smaller producer like Lotus would be a significant blow.
It is worth noting that, although Lotus is owned by a Chinese company, the US is one of its biggest markets, and the US and China are currently in negotiations for a trade deal. This may explain Lotus’ rumored plans to establish a plant in the US.
Local residents near the Hethel facility expressed their disappointment and sadness at the potential closure of the plant. They emphasized the historical significance of Lotus in the UK and the impact it would have on the local economy.
Recent figures from the Society of Motor Manufacturers and Traders (SMMT) showed a significant drop in car exports to the US due to the tariffs imposed by President Trump. This has led to concerns about the future of the UK’s car industry. Stay updated on Norfolk news through BBC Sounds, Facebook, Instagram, and X.