Amidst growing concern over the future of UK automotive manufacturing, British sports car maker Lotus has moved to reassure the government that it remains committed to its Norfolk roots. At an urgent meeting on Sunday, the company confirmed to Business Secretary Jonathan Reynolds that it has no plans to close its Norfolk factory despite preparing to resume production following a reduction in US tariffs.
In a statement on X, it said, "Lotus Cars is continuing normal operations; there are no plans to close any factory,"
1,300 UK jobs saved
The meeting was prompted by reports that Lotus was considering shifting sports car production to the US, an option that could have put 1,300 UK jobs at risk and marked a significant setback for the country's car industry. Lotus's Chinese parent company, Geely, was reportedly exploring options, including manufacturing the Emira sports car in the US and permanently closing its Hethel facility in Norfolk.
Lotus's Norfolk facility plays a key role in aluminium-based sports car production. The Hurricane Way factory in Norwich, a sub-assembly site, is responsible for manufacturing aluminium chassis and components used in various Lotus models. This includes the extruded and bonded aluminium chassis for the Evora, Exige, and Elise, along with parts supplied to other global carmakers. The facility also produces steel subframes and fuel tanks.
Lotus primarily sources aluminium for its Norfolk operations from its own facilities, along with potential contributions from other specialised manufacturers, including those based in the UK. This strong manufacturing foundation in Norfolk, particularly in aluminium chassis and component production, underscores the strategic importance of Lotus's UK operations.
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The Hurricane Way facility in Norwich not only supports Lotus's own vehicle range but also serves other global carmakers, highlighting the region's significance in the brand's supply chain and technical expertise. These capabilities make the potential relocation of production to the US even more consequential, prompting heightened concern over the future of UK-based manufacturing and leading to recent high-level talks between Lotus, its parent company Geely, and the UK government.
Government seeks clarity amidst fears of production shift
A spokesperson for the Department for Business and Trade said that Jonathan Reynolds met with Lotus and its parent company, Geely, on Sunday to seek clarity on the situation. "He was reassured by management that they remain committed to their UK operations and have no plans to close the Hethel plant," the spokesperson confirmed.
A move to shift manufacturing overseas by a prestigious brand like Lotus would be a blow to the UK government, especially as Labour's newly published industrial strategy identifies automotive production as a key sector for support. Lotus temporarily halted production at its Hethel plant in mid-May to manage stock levels and address supply chain disruptions triggered by the US's additional 25 per cent import tariffs on cars.
The spokesperson added, "He also set out the 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 research & development funding, announced in the UK's modern industrial strategy."
Other UK carmakers, including Jaguar Land Rover (JLR) and Bentley, also suspended exports to the US, although JLR has since resumed shipments while awaiting the implementation of a UK-US trade deal agreed on 8 May. US tariffs are set to drop to 10 per cent on Monday.
UK is the heart of the Lotus brand
In a statement released on Saturday, Lotus reaffirmed its commitment to Britain, stating that "the UK is the heart of the Lotus brand" and remains its largest commercial market in Europe.
"It is 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," added the spokesperson.
Lotus's Norfolk factory, its sole UK manufacturing site, has the capacity to produce up to 5,000 Emira sports cars annually, each starting at £75,000. Around 60 per cent of these vehicles are exported to the US. The site also produces a limited number of electric hypercars, priced from £2.3 million. In addition, Lotus operates a factory in China dedicated to manufacturing electric vehicles.
"At this moment, we are discussing with our strategic partners in the US on localisation plans in order to avoid the influence of the US tariff. With our strategic partners, we had an in-depth discussion around our US landscape, and we believe localisation is a feasible plan," said Qingfeng Feng, CEO of Lotus Technology.
Also Read: Tariffs bite: US domestic B&C sector struggles with rising project costs as aluminium prices mount
Image Source: Lotus Cars PR
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