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Lotus Cars has issued a statement declaring it has “no plans” to close any of its existing factories, following reports that the company was considering establishing a new production facility in the United States.
Sources indicate the British automotive firm had been evaluating the possibility of ceasing production at its Hethel plant in Norfolk, a move that could have potentially jeopardized approximately 1,300 jobs.
In a statement released via X, Lotus Cars affirmed that it “is continuing normal operations, there are no plans to close any factory,” while acknowledging that it is “actively exploring” strategic options within the global market.
Following a meeting between Lotus Cars, its Chinese parent company Geely, and Business Secretary Jonathan Reynolds on Sunday, Reynolds stated he “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, with sources within the company later informing the BBC that the situation was under review and relocating production to the US was under consideration.
Earlier this year, production at the Hethel facility was temporarily halted due to disruptions caused by the imposition of tariffs on vehicles imported into the United States.
The United States represents a significant market for Lotus; however, tariffs pose a considerable challenge to its business model, with importers facing a 25% levy on cars and automotive components.
The UK government and the US administration have since reached an agreement to reduce tariffs on UK-manufactured vehicles entering the US to 10%.
However, as the agreement is scheduled to take effect on June 30, manufacturers have been subject to the higher tariff rate to date.
Lotus Cars stated: “Lotus remains committed to the UK, to our customers, employees, dealers, suppliers, as well as our proud British heritage.”
Ben Goldsborough, the Labour MP for South Norfolk, released a statement on Facebook expressing his “deep concern regarding recent rumors surrounding a potential closure of Lotus’s Hethel facility.”
He further stated that he had engaged in “telephone conversations” with representatives from Lotus and government ministers.
He added: “While discussions continue, I want to be absolutely clear: I will do everything in my power to ensure that the Hethel facility remains operational and that Lotus continues to thrive in Norfolk.”
Andrew Sinclair, Political Editor for BBC East, stated: “I understand the phone calls started on Friday afternoon and they’ve continued into the weekend between ministers and civil servants. We are told that the business secretary will be speaking to Lotus “shortly” and the local MP is planning to visit on Monday.
“Lotus may be publicly saying that it has no plans to close its factory in Hethel but all this weekend activity suggests that in government there is a lot of concern.
“The Prime Minister has made much of getting a special deal for British car manufacturing in his tariff deal with the USA and even though his main focus was large companies like Jaguar Land Rover, ministers know it would be a psychological blow if nothing else to lose a smaller producer like Lotus.
“It is worth noting that while the Norfolk car maker is owned by the Chinese, America is one of its biggest markets and China and the US appear to be moving close to some sort of trade deal.
“President Donald Trump has often said that if companies want to avoid tariffs they should build factories in the USA, that is what Lotus is rumoured to be doing.
“Put all that together and you can see why a lot of people in Government and Norfolk are worried at the moment.”
Anthony Burrell, a resident near the Hethel site, expressed that he would be “gutted” if production were to move to the US, emphasizing that Lotus holds a “quite special” place for him.
“It is the legacy that it holds. There is a lot of history of Lotus in the UK,” he stated.
Madison Spalding, another local resident, described the potential closure of the site as “really heart breaking.”
“I think it is just such a shame. A lot of businesses are sort of going under, especially in Wymondham.”
Paul Davis, who resides near the site just outside of Norwich, characterized the situation as “a sad time” for the car industry in the UK.
“The car industry in the UK is really going down the bucket as far as I am concerned.
“No end of places have shut down over a number of years,” he said.
Recent data regarding the UK’s automotive sector revealed that exports to the US had decreased by half, as tariffs imposed under the Trump administration led some firms to suspend shipments.
Car shipments to America declined by 55.4% in May, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
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