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Lotus denies plans to close Hethel factory amid US expansion talks

29 June 2025
in Business
Reading Time: 3 mins read
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Lotus denies plans to close Hethel factory amid US expansion talks
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Lotus has insisted it has “no plans” to shut down any of its UK manufacturing sites following reports it was weighing a potential production shift to the United States.

The carmaker, best known for its lightweight sports cars and deep-rooted British heritage, was reported by the Financial Times to be reviewing whether to move some production overseas—putting as many as 1,300 jobs at risk at its Hethel headquarters in Norfolk.

In a statement released on X (formerly Twitter), the company confirmed that it is “actively exploring” new global market opportunities but stressed that “Lotus Cars is continuing normal operations. There are no plans to close any factory.”

Sources at Lotus told the BBC the situation remains under review as the firm evaluates its international production footprint. A key factor driving discussions is the imposition of 25% tariffs on imported vehicles and car parts by the US, a significant market for Lotus. The tariff hike has temporarily disrupted production in Hethel and complicated transatlantic sales.

The Business Secretary, Jonathan Reynolds, is expected to hold talks with Lotus’s owners in a bid to reassure both the company and local stakeholders.

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