Lotus Cars has ‘no plans’ to close any factory

Sportscar maker Lotus has declared it has “no plans” to close any factory after it emerged the company was considering setting up a new plant in the US.

The BBC understands the iconic manufacturer had been considering ending production at its headquarters in Hethel, Norfolk, which would put 1,300 jobs at risk.

In a statement on X, it said: “Lotus Cars is continuing normal operations, there are no plans to close any factory,” but admitted it was “actively exploring” options in the global market.

The story was first reported by the Financial Times, but sources within the company have told the BBC the situation was under review and they were considering taking production to the US.

It was understood Jonathan Reynolds, Secretary of State for Business and Trade, was set to hold talks with the owners of the company.

It comes after production in Hethel was temporarily suspended due to disruption caused by the introduction of tariffs on cars being imported to the US.

America is a major market for Lotus, but tariffs threaten its business, as sellers in the US were required to pay 25% on imports of cars and car parts.

The company said: “Lotus remains committed to the UK, to our customers, employees, dealers, suppliers, as well as our proud British heritage.”

Ben Goldsborough, the Labour MP for South Norfolk, issued a statement on Facebook and said he was “deeply concerned by the recent rumours surrounding a potential closure of Lotus’s Hethel facility”.

He said he had been in “telephone conversations” with members at Lotus as well as government ministers.

He added: “While discussions continue, I want to be absolutely clear: I will do everything in my power to ensure that the Hethel facility remains operational and that Lotus continues to thrive in Norfolk.”

Andrew Sinclair, Political Editor for BBC East, said: “I understand the phone calls started on Friday afternoon and they’ve continued into the weekend between ministers and civil servants. We are told that the business secretary will be speaking to Lotus “shortly” and the local MP is planning to visit on Monday.

“Lotus may be publicly saying that it has no plans to close its factory in Hethel but all this weekend activity suggests that in Government there is a lot of concern.

“The Prime Minister has made much of getting a special deal for British car manufacturing in his tariff deal with the USA and even though his main focus was large companies like Jaguar Land Rover, ministers know it would be a psychological blow if nothing else to lose a smaller producer like Lotus.

“It is worth noting that while the Norfolk car maker is owned by the Chinese, America is one of its biggest markets and China and the US appear to be moving close to some sort of trade deal.

“President Trump has often said that if companies want to avoid tariffs they should build factories in the USA, that is what Lotus is rumoured to be doing.

“Put all that together and you can see why a lot of people in Government and Norfolk are worried at the moment.”