7:22 am, June 30, 2025
Lotus has pledged it to continue building cars in the UK after meeting with the business secretary, amid reports the carmaker was to close its operations in Norfolk.
Last week, the Financial Times reported that the Chinese-owned British sports car maker was considering closing its Hethel plant in Norfolk in favour of a new plant in the US, putting 1,300 jobs at risk.
However, within hours, the carmaker issued a statement saying it had ‘no plans’ to close the factory’.
On Sunday (Jun 29), business secretary Jonathan Reynolds, alongside local MP, Ben Goldsborough, met with Lotus to hold talks.
Reynolds said the government was ‘reassured’ that Lotus has committed to continue building cars in the UK.
In a statement, a spokesperson from the Department for Business and Trade said: ‘The business secretary met with Lotus and Geely earlier to clarify the company’s situation following recent speculation, and was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.
‘He also set out government’s commitment to working with Lotus and the wider car sector to improve competitiveness and drive growth, including by slashing manufacturers’ energy costs and providing £2.5bn capital and R&D funding, announced in the UK’s modern Industrial Strategy.’
Lotus has been majority-owned by Geely since 2017.
The Financial Times report suggested that Lotus has struggled to pay its suppliers in recent weeks, partly as a result of US tariffs.
As such, Lotus’s Hethel plant and a Geely facility in Wuhan, China – which also makes Lotus models – were under pressure.
But Lotus denied it was ending UK car manufacturing.
In a statement issued in Saturday, Lotus said: ‘Lotus Cars is continuing normal operations, and there are no plans to close the factory.
‘We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.
‘We have invested significantly in R&D and operations in the UK, over the past six years. Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage.’
