Lotus has “no plans” to close its UK factory, the British sports car maker declared in a statement to Auto Express, following media reports that it may end car production at its historic base in Hethel, Norfolk.
The Financial Times cited two unnamed sources who suggested the famous British brand, which has been controlled by Chinese manufacturer Geely since 2017, has been struggling to pay suppliers in recent weeks. Production at Hethel had been paused since the middle of May in order to manage supply chain issues resulting from US trade tariffs.
It was rumoured that Lotus might call time on its UK car manufacturing operations within a month, which would have put 1,300 jobs at risk, however the firm has now issued a statement in response to the reports:
“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.
Best British cars: Top 50 all-time greatest British-built cars revealed
“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.”
It has been reported by the BBC that Jonathan Reynolds, Secretary of State for Business and Trade, is due to hold talks with Lotus owners Geely soon concerning the future of the Hethel plant.
