Lotus has reaffirmed its commitment to its UK operations, specifically its Norfolk factory, as US tariffs on car imports are set to ease. Business Secretary Jonathan Reynolds met with Lotus and Geely executives, receiving assurances that the Hethel plant will not be closing despite earlier considerations of moving production to the US. This commitment secures 1,300 jobs.
The sports car manufacturer had paused production in May, partly due to the burden of the 25% US tariffs. With these tariffs now reducing to 10%, the economic feasibility of exporting from the UK, where 60% of Emira sports cars are sent to the US, significantly improves. This positive shift has allowed Lotus to confidently reiterate its dedication to its UK base.
A Department for Business and Trade spokesperson confirmed that Reynolds “was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.” Lotus itself underscored its UK ties, stating “the UK is the heart of the Lotus brand” and its largest European market.
The news provides stability for the local workforce and bolsters the UK’s automotive manufacturing reputation. The government’s ongoing support, including a £2.5 billion fund for capital and R&D, demonstrates a concerted effort to foster growth and competitiveness in the sector.