Lotus has 'no plans' to close any car factory

Sportscar maker Lotus has declared it has “no plans” to close any factory after it emerged the company was considering setting up a new plant in the US.

The BBC understands the firm had been considering ending production at its plant in Hethel, Norfolk, which would put 1,300 jobs at risk.

In a statement on X, it said: “Lotus Cars is continuing normal operations, there are no plans to close any factory,” but admitted it was “actively exploring” options in the global market.

Lotus Cars and Chinese-owner Geely met Business Secretary Jonathan Reynolds on Sunday, and he “was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant”.

The story was first reported by the Financial Times, but sources within the company have told the BBC the situation was under review and they were considering taking production to the US.

Earlier this year production in Hethel was temporarily suspended due to disruption caused by the introduction of tariffs on cars being imported to the US.

America is a major market for Lotus, but tariffs threaten its business, as sellers in the US were required to pay 25% on imports of cars and car parts.

The UK government and the US administration have agreed a deal to lower tariffs on UK-made cars entering the US to 10%.

But because the agreement only comes into force on 30 June, it means manufacturers have had to pay the higher rate to date.

The company said: “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, issued a statement on Facebook and said he was “deeply concerned by the recent rumours surrounding a potential closure of Lotus’s Hethel facility”.

He said he had been in “telephone conversations” with members at Lotus as well as 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, said: “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, who lives near to the site in Hethel, said Lotus he would be “gutted” if production moved to the US as the company was “quite special” to him.

“It is the legacy that it holds. There is a lot of history of Lotus in the UK,” he said.

Madison Spalding, who also lives nearby, said it would be “really heart breaking” if the site shut.

“I think it is just such a shame. A lot of businesses are sort of going under, especially in Wymondham.”

Paul Davis lives locally to the site just outside of Norwich, and said it was “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 figures on the UK’s car industry revealed that exports to the US had halved as Trump’s tariffs caused some firms to halt shipments.

Car shipments to America dropped by 55.4% in May, according to the Society of Motor Manufacturers and Traders (SMMT).