Lotus in High-Level Talks with Business Secretary Amid Uncertainty Over UK Operations
British car manufacturer Lotus has entered urgent discussions with Business Secretary Jonathan Reynolds following speculation over the future of its operations in Norfolk. Despite concerns, the company has stated it has no intention of closing its Hethel factory.
The meeting, held on Sunday morning, comes after reports suggested Lotus was weighing a shift in production from the UK to the United States. Such a move could endanger around 1,300 jobs and cast doubt on the long-term future of sportscar manufacturing at the company’s historic Norfolk site.
Geely, the Chinese parent company of Lotus, is reportedly reviewing potential plans to relocate production of the Emira sports car to the US. If finalized, this shift could mark a major change for the company and lead to the permanent closure of its UK production line.
The potential exit of a prestigious automotive brand from the UK would present a political challenge for the government, particularly in light of Labour’s newly released industrial strategy, which emphasizes support for the automotive sector as a pillar of economic growth.
In a statement released over the weekend, Lotus reassured the public and employees, saying: “The UK remains central to Lotus’s identity and business. Normal operations are ongoing, and there are no intentions to shut down the Hethel site.” The company added that it is evaluating strategic steps to improve its efficiency and global competitiveness amid a changing market landscape.
Production at the Norfolk plant was temporarily halted in mid-May due to inventory adjustments and complications from new U.S. tariffs. The 25% duty on car imports from the UK had disrupted the supply chain, although a trade agreement signed on May 8 between the UK and the US is expected to ease these pressures. The tariff rate is scheduled to drop to 10% on Monday.
The Hethel facility has the capacity to build up to 5,000 Emira models annually, with prices starting at £75,000. Around 60% of those vehicles are destined for the U.S. market. The factory also produces a limited number of electric hypercars, which sell for over £2.3 million each.
Ben Goldsborough, Labour MP for South Norfolk, expressed his concerns on social media, writing that he was “deeply troubled” by the speculation over a possible shutdown of the Hethel plant and vowed to monitor developments closely.
Ben Goldsborough, the Labour MP for South Norfolk, said he had spoken directly with both Lotus executives and government officials to underscore the significance of the Hethel plant. “This site is not just a symbol of Britain’s automotive legacy—it’s a cornerstone of our local economy and a source of highly skilled jobs,” he said. Goldsborough described the discussions as preliminary but serious, and he pledged to push for every possible solution, including government funding, tax incentives, and collaboration with potential partners to secure the factory’s future.
Meanwhile, Lotus Technology CEO Qingfeng Feng indicated during a recent investor update that the company is seriously evaluating a shift in production across the Atlantic.
“We’re currently in talks with our strategic partners in the U.S. to explore local manufacturing options that would help us mitigate the impact of American import tariffs,” Feng said, according to a transcript provided by data firm Alphasense. “We’ve conducted a detailed review of our U.S. operations and believe that localizing production is a practical and viable strategy.”
