Lotus Hethel factory future: no plans to close UK car building base, says brand
The British sports car maker has quashed the rumours it’s planning to end car production at its historic base in Hethel, Norfolk
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.
“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.
Geely has invested around £3bn in new technology to rejuvenate the Lotus product range and move the brand towards electrification. The all-electric Eletre SUV and Emeya four-door GT have been warmly received but recent market conditions have proven challenging. The all-electric sports car project (codenamed Type 135) has stalled too, so attention has recently turned to the electrifying the Emira with hybrid power.
Geely’s focus is said to have shifted to its other plant building Lotus cars in Wuhan, China, while in April Lotus announced that 270 UK jobs would be cut at Hethel. The US is a crucial market for Lotus and the recent imposition of tariffs on car imports by President Trump, including a 100% tariff on cars built in China, has encouraged the brand to look at the possibility of a US production base - one possible location would be to use part of Volvo's plant in South Carolina with the Swedish firm also owned by Geely.
On a recent earnings call, Lotus CEO Feng Qingfeng indicated that “localisation” of production in the US is seen as a “feasible plan” for the company, but it would seem that if this does happen, it won’t be at the expense of Lotus’ Hethel headquarters, which was established in 1966 by the company’s founder Colin Chapman.
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