Business Secretary Secures Lotus Commitment to UK Operations

UK Business Secretary Jonathan Reynolds has successfully secured a commitment from Lotus that it will not be closing its Norfolk factory. The urgent meeting on Sunday with the sports car manufacturer and its Chinese owner, Geely, aimed to address concerns that production might shift to the US, jeopardizing 1,300 jobs. This assurance is a significant win for the government and the UK’s automotive industry.
The speculation arose after Lotus temporarily halted production at its Hethel plant in mid-May, citing inventory and supply chain issues linked to high US tariffs. However, with tariffs set to decrease, Lotus is preparing to resume operations. The Department for Business and Trade spokesperson confirmed Reynolds was “reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.”
Lotus itself affirmed on Saturday that “the UK is the heart of the Lotus brand,” indicating its strong ties to the country despite global market considerations. The company’s Hethel facility is its sole UK site and has the capacity to produce a substantial number of Emira sports cars annually, a majority of which are exported to the US.
The government has also underlined its dedication to bolstering the automotive sector through various initiatives, including financial support and efforts to reduce energy costs. This collaborative approach aims to enhance the competitiveness and growth of the UK’s car sector.