Lotus has reiterated that it has no plans to close its Norfolk factory, following media speculation that operations could shift to the United States. The company issued a formal statement on Friday confirming that it is continuing normal operations at its Hethel site — home to around 1,300 employees.
“The UK is the heart of the Lotus brand — home to our sports car manufacturing, global design centre, motorsport operations, and Lotus Engineering,” the company said. “We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.”
The reassurance came after reports suggested the Hethel factory might close within a month. However, the company clarified that while production has been paused since mid-May, this was due to supply chain issues linked to US tariffs — not any decision to shut the site.
Over the weekend, UK Business Secretary Jonathan Reynolds met with representatives from Lotus and its parent company Geely to discuss future plans and support options. In a statement issued Sunday, Reynolds said he had been reassured that Lotus has no plans to close their Hethel plant, and that the government remained committed to backing UK automotive manufacturing.
A government spokesperson added on Monday that Lotus management remain committed to their UK operations.
Geely, which acquired a majority stake in Lotus in 2017, has invested around £3 billion into new technologies and electric vehicle development as part of its strategy to reposition Lotus as a lifestyle performance brand. The company says it remains dedicated to the UK as both a commercial hub and heritage centre.
“The US remains an important market for Lotus,” the company noted, “but recent tariffs have impacted our operations. We have invested significantly in R&D and operations in the UK over the past six years and remain committed to our customers, employees, dealers, suppliers, and our proud British heritage.”
Figures from the Society of Motor Manufacturers and Traders (SMMT) released Friday show that UK car exports to the US have halved since ‘Liberation Day’, when new trade policies took effect.
