Positive Outcome: Lotus Confirms Hethel Factory’s Future

A positive outcome has been reached regarding the future of the Lotus Hethel factory, with the company confirming it will not be closing its Norfolk plant. This reassurance was conveyed directly to Business Secretary Jonathan Reynolds during an urgent Sunday meeting, alleviating fears for the 1,300 jobs at stake and providing stability for the UK automotive sector.
The situation escalated after Lotus, owned by Geely, temporarily ceased production in mid-May, sparking reports that it was considering manufacturing its Emira sports car in the US. However, a Department for Business and Trade spokesperson stated that Reynolds “was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.”
Lotus is now preparing to resume production as US tariffs, a key factor in the earlier pause, are due to be reduced from 25% to 10%. The company has consistently affirmed the UK’s significance, stating “the UK is the heart of the Lotus brand,” despite exploring “strategic options” for global competitiveness.
The government’s commitment to supporting the automotive industry, including through financial aid and efforts to reduce energy costs, complements Lotus’s decision. This ensures the continued contribution of the Hethel plant, which produces both the Emira and a high-value electric hypercar, to the local and national economy.