Lotus has committed to its UK operations, safeguarding 1,300 jobs at its Norfolk factory. The sports car maker provided this firm reassurance to Business Secretary Jonathan Reynolds during an urgent meeting, dispelling concerns that it was considering moving production to the US.
The speculation arose after Lotus temporarily halted production at its Hethel plant in mid-May, with reports suggesting its Chinese owner, Geely, was looking at manufacturing options in the US. However, a Department for Business and Trade spokesperson confirmed Reynolds “was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.”
Lotus is now preparing to resume full operations as US tariffs on car imports are set to decrease to 10%. The company had previously emphasized that “the UK is the heart of the Lotus brand” and its largest commercial market in Europe, aligning with the current decision to maintain its domestic manufacturing base.
The government has also pledged robust support for the automotive industry, encompassing measures to reduce energy costs for manufacturers and significant funding for capital and R&D. This collaborative approach aims to enhance the competitiveness and growth of the UK’s car sector.