Lotus has ‘no plans’ to shut any automotive manufacturing facility

Sportscar maker Lotus has declared it has “no plans” to shut any manufacturing facility after it emerged the corporate was contemplating organising a brand new plant within the US.

The BBC understands the agency had been contemplating ending manufacturing at its plant in Hethel, Norfolk, which might put 1,300 jobs in danger.

In a assertion on X, it mentioned: “Lotus Automobiles is continuous regular operations, there aren’t any plans to shut any manufacturing facility,” however admitted it was “actively exploring” choices within the international market.

Lotus Automobiles and Chinese language-owner Geely met Enterprise Secretary Jonathan Reynolds on Sunday, and he “was reassured by administration that they’re dedicated to their UK operations and don’t have any plans to shut their Hethel plant”.

The story was first reported by the Monetary Instances, however sources throughout the firm have informed the BBC the scenario was beneath evaluate they usually had been contemplating taking manufacturing to the US.

Earlier this yr manufacturing in Hethel was quickly suspended on account of disruption attributable to the introduction of tariffs on automobiles being imported to the US.

America is a significant marketplace for Lotus, however tariffs threaten its enterprise, as sellers within the US had been required to pay 25% on imports of automobiles and automotive elements.

The UK authorities and the US administration have agreed a deal to decrease tariffs on UK-made automobiles coming into the US to 10%.

However as a result of the settlement solely comes into drive on 30 June, it means producers have needed to pay the upper price thus far.

The corporate mentioned: “Lotus stays dedicated to the UK, to our clients, workers, sellers, suppliers, in addition to our proud British heritage.”

Ben Goldsborough, the Labour MP for South Norfolk, issued a press release on Fb and mentioned he was “deeply involved by the current rumours surrounding a possible closure of Lotus’s Hethel facility”.

He mentioned he had been in “phone conversations” with members at Lotus in addition to authorities ministers.

He added: “Whereas discussions proceed, I wish to be completely clear: I’ll do every part in my energy to make sure that the Hethel facility stays operational and that Lotus continues to thrive in Norfolk.”

Andrew Sinclair, Political Editor for BBC East, mentioned: “I perceive the cellphone calls began on Friday afternoon they usually’ve continued into the weekend between ministers and civil servants. We’re informed that the enterprise secretary might be talking to Lotus “shortly” and the native MP is planning to go to on Monday.

“Lotus could also be publicly saying that it has no plans to shut its manufacturing facility in Hethel however all this weekend exercise means that in authorities there’s plenty of concern.

“The Prime Minister has made a lot of getting a particular deal for British automotive manufacturing in his tariff take care of the USA and although his important focus was massive corporations like Jaguar Land Rover, ministers know it might be a psychological blow if nothing else to lose a smaller producer like Lotus.

“It’s value noting that whereas the Norfolk automotive maker is owned by the Chinese language, America is one in every of its largest markets and China and the US look like transferring near some form of commerce deal.

“President Donald Trump has usually mentioned that if corporations wish to keep away from tariffs they need to construct factories within the USA, that’s what Lotus is rumoured to be doing.

“Put all that collectively and you’ll see why lots of people in Authorities and Norfolk are anxious in the mean time.”

Anthony Burrell, who lives close to to the location in Hethel, mentioned Lotus he can be “gutted” if manufacturing moved to the US as the corporate was “fairly particular” to him.

“It’s the legacy that it holds. There’s plenty of historical past of Lotus within the UK,” he mentioned.

Madison Spalding, who additionally lives close by, mentioned it might be “actually coronary heart breaking” if the location shut.

“I believe it’s simply such a disgrace. Quite a lot of companies are form of going beneath, particularly in Wymondham.”

Paul Davis lives domestically to the location simply outdoors of Norwich, and mentioned it was “a tragic time” for the automotive business within the UK.

“The automotive business within the UK is basically taking place the bucket so far as I’m involved.

“No finish of locations have shut down over plenty of years,” he mentioned.

Latest figures on the UK’s automotive business revealed that exports to the US had halved as Trump’s tariffs precipitated some corporations to halt shipments.

Automotive shipments to America dropped by 55.4% in Could, based on the Society of Motor Producers and Merchants (SMMT).