Chinese-owned Lotus has confirmed its commitment to UK production, reassuring the British government that its Norfolk factory will remain open. Following an urgent meeting with Business Secretary Jonathan Reynolds, concerns about a potential move of manufacturing to the US, which would impact 1,300 jobs, have been alleviated. This decision signifies Geely’s continued investment in its UK operations.
The meeting on Sunday was prompted by reports that Lotus was considering relocating its sports car production from Hethel, Norfolk, to the United States. A Department for Business and Trade spokesperson indicated that Reynolds was “reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.” This commitment is crucial for both the UK economy and the government’s industrial strategy.
Lotus had temporarily halted production at Hethel in mid-May, partly due to the then-25% US tariffs on car imports. With these tariffs scheduled to be reduced to 10% on Monday, the viability of exporting from the UK to the US market, which accounts for about 60% of Emira sales, significantly improves. Lotus has publicly stated that “the UK is the heart of the Lotus brand.”
Despite earlier discussions by Lotus Technology CEO Qingfeng Feng about “localisation plans” in the US, the immediate future sees the Hethel plant continuing its operations, producing both the Emira sports car and an electric hypercar. The government’s pledge of £2.5 billion in capital and R&D funding for the automotive sector further reinforces the positive outlook.
