Lotus says it is NOT planning to move sports car production to the US
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- Reports that Hethel will close to shift production to the US have been shut down
Lotus is not closing its UK factory, the heritage sports car maker has confirmed, despite reports over the weekend that it was looking to relocate production to the United States.
The British low-volume manufacturer has insisted that 'the UK is the heart of the Lotus brand' and that 'there are no plans to close' its Hethel plant in Norfolk.
The Financial Times first reported that it was reviewing a move to overseas production to get around Donald Trump's tariffs on foreign-built cars - putting 1,300 jobs at risk at Hethel.
The company has since confirmed on X that it is 'actively exploring' new global market opportunities but is 'continuing normal operations'.
Lotus is one of the manufacturers (along with JLR and Rolls-Royce) that ceased shipments to the US following the introduction of tariffs on cars imported to the States in April.
While the US is a significant market for the lightweight sports car brand, it has since confirmed that the UK is its 'largest commercial market in Europe'.
Lotus delivered 12,000 vehicles in 2024, a year-on-year increase of over 70 per cent, with the European market making up nearly 40 per cent of deliveries, and North America 21 per cent. China made up 25 per cent.
In a full statement made over the weekend, Lotus said: 'The UK is the heart of the Lotus brand - home to our sports car manufacturing, global design centre, motorsport operations, and Lotus Engineering. It is also our largest commercial market in Europe.
'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.'
The Financial Times claimed business secretary Jonathan Reynolds was due to meet with Lotus officials on Sunday 29 June, and that the Government was prepared to offer Lotus support to protect UK jobs.
Lotus told the paper in a statement that it had paused production of the Emira from mid-May to manage inventories amid supply chain issues related to US tariffs, but refused to comment further on 'a rumour' about Hethel's closure.
Hethel has been home of Lotus manufacturing since 1966. Acquired by Geely in 2017, it has since undergone a £100 million investment. However Lotus has been reducing costs of late as it experiences continued losses.
In April, 270 workers were laid off at the site due to a 'proposed business restructure to ensure sustainable operations' as it faced 'volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars'.
In a call last week, Lotus chief executive Feng Qingfeng told investors that it wanted to build more cars in America to get around the higher tariffs on foreign-built cars - now 10 per cent on the first 100,00 cars into the US.
'We believe that localisation is a feasible plan,' he said.
'We are trying to leverage our US strategy to catch up the losses due to the tariff hike,' he added.
Lotus has confirmed to This is Money its commitment to the UK, and that it would not be making further comment at the moment.
