Lotus Reassures UK Government: Norfolk Factory Safe Amid US Tariff Concerns

Lotus has confirmed to the UK business secretary, Jonathan Reynolds, that it has no plans to shut its Hethel factory in Norfolk. This reassurance comes after concerns emerged that the sports car maker was considering moving production to the US, a move that could jeopardize 1,300 jobs. The British marque, owned by Chinese giant Geely, had paused production in mid-May due to US tariffs and was exploring options, including manufacturing its Emira sports car in the United States.
The urgent meeting on Sunday between Reynolds and Lotus/Geely management aimed to clarify the company’s position. A Department for Business and Trade spokesperson stated that the business secretary “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 the UK government, especially after Labour’s recent industrial strategy highlighted automotive production as a key sector for support.
Lotus itself reiterated on Saturday that “the UK is the heart of the Lotus brand” and its largest commercial market in Europe. The company is poised to resume production as US tariffs are set to be reduced from 25% to 10% on Monday. While exploring “strategic options to enhance efficiency and ensure global competitiveness,” Lotus maintains its dedication to the Hethel facility, which has the capacity to produce up to 5,000 Emira sports cars annually, with about 60% of them destined for the US market.
Despite earlier statements from Lotus Technology CEO Qingfeng Feng about “localisation plans” in the US to avoid tariff influence, the immediate future of the Norfolk factory appears secure. The government has also pledged support to the wider car sector, including energy cost reductions and significant R&D funding, underscoring its commitment to the UK’s automotive industry.