Iconic car brand in 'emergency talks' over fears it will ‘end production' in UK – despite saying it has ‘no plans'
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EMERGENCY talks are reportedly being held today over an iconic car brand's future in the UK.
The Government is understood to be stepping in to help Lotus stave off having to close its factory in Hethel, Norfolk, which employs 1,300 people.
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A Lotus sign is seen at the car plant headquarters
Credit: Reuters
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Lotus Emira production line at the Hethel Norfolk factory
Credit: Alamy
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A factory worker builds a car at the plant
Credit: I-Images
Department officials are reported to have contacted the sports car manufacturer's Chinese owners on Friday after it emerged closing the plant was allegedly on the cards.
Business Secretary Jonathan Reynolds was set to hold talks on Sunday (June 29) with Geely Auto amid fears it would fall victim to US President Donald Trump's trade tariff hike.
However, there is some confusion as the firm itself claimed yesterday it had "no plans to close the factory".
A spokesperson added: 'We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.
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'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.
'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.'
Whitehall sources told The Times the future of the factory was a commercial decision for the company.
Trump announced in February a raft of "reciprocal" tariffs aimed at countering what his administration sees as unfair trade practices inflicted on the US by foreign nations.
On Friday, reports suggested it was inevitable Lotus' UK production operations would be shifted across the Atlantic - perhaps as soon as early 2026.
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Company chiefs said import taxes have 'led us not to be able to export many vehicles to the US market'.
It comes after the US and UK announced a trade deal last month reducing import tariffs from 27.5% to 10%.
Lotus's chief executive, Qingfeng Feng, told investors on Wednesday last week: 'In the future, we are trying to leverage our US strategy to catch up the losses due to the tariff hike.
"At this moment, we are discussing localisation plans with our strategic partners in the US in order to avoid the influence of US tariffs.
"With our strategic partners, we had an in-depth discussion around the US landscape, and we believe that localisation is a feasible plan."
Manufacturer's history
Lotus - founded by engineer Colin Chapman in 1948 - began production at Hethel in 1966.
It has shifted hands multiple times over the years in various bids to stave off financial instability.
Geely bought a majority stake in 2017, before investing £3 billion in UK production, but later switched much of its focus to a plant in Wuhan, China.
The manufacturer announced 270 job cuts in the UK in April and said last week sales for the first three months of 2025 had fallen 42%, racking up a net loss of $183 million (£134 million).
The Sun has approached Lotus for comment.
Do you know more? Email ryan.merrifield@thesun.co.uk
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