Latest news with #JonathanReynolds
Times
an hour ago
- Automotive
- Times
Jonathan Reynolds intervenes to halt closure of Lotus car factory
The Chinese owners of Lotus have slammed the breaks on plans to close its British factory following an intervention by the government. Jonathan Reynolds will hold emergency talks on Sunday with owner Geely to stave off the shutting Lotus's works in Hethel, Norfolk, according to sources familiar with the situation. Department officials are understood to have contacted bosses at Lotus after it emerged on Friday that the British sports car maker was preparing to close its factory. But Whitehall sources stressed that the future of the factory was a commercial decision for the company. Lotus initially declined to comment on reports of the prospective closure, before insisting on Saturday morning that it had 'no plans to close the factory'. 'We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market,' a spokesman said. '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.' The comments will provide at least temporary relief for the 1,300 people that work for Lotus in Norfolk. Late on Friday it appeared that Lotus was set to fall victim to Donald Trump's trade tariffs with plans to end British production and move it to the US. Reports suggested that production at Hethel as early as next year. Executives said that Trump's import taxes have 'led us not to be able to export many vehicles to the US market'. Sources cautioned that no final decision had been taken about the Hethel works, which employs 1,300 people. • The closure would have marked a major blow to the UK's carmaking sector, which the government has made a priority during trade negotiations with the White House. The US-UK trade deal announced on May 8 reduced import tariffs from 27.5 per cent to 10 per cent. Qingfeng Feng, Lotus's chief executive, told investors on Wednesday: '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.' Lotus was founded in 1948 and began production at Hethel in 1966. Founded by engineer Colin Chapman, it has had a number of owners over the years as it battled against financial instability. It was first bought by America's General Motors in 1986, then sold to the Malaysian car manufacturer Proton in 1996, before Geely acquired a majority stake in 2017. Geely invested £3 billion in the Hethel factory and technology, but switched much of its focus towards a new plant in Wuhan. Lotus was listed in the US last year as Geely's billionaire founder, Li Shufu, sought to offload assets. Geely also owns Volvo and Polestar, the Swedish producer of electric vehicles. The US float has been difficult, however, with Lotus shares shedding more than 80 per cent of their value. The carmaker announced 270 job cuts in the UK in April, and on Wednesday, it revealed that sales volumes in the first three months of 2025 had fallen 42 per cent to 1,274. The company racked up a net loss of $183 million (£134 million) between January and March. Qingfeng insisted that Lotus had made a 'steady recovery in our margin profile', adding: 'We remain closely attuned to evolving dynamics in key markets such as the US, and are actively evaluating strategic pathways.'
Mint
2 hours ago
- Automotive
- Mint
Lotus Plans to Keep Making Cars in UK After Plant Closure Report
Automaker Lotus said it has no plans to end production in the UK following an earlier report that it will shut its plant in the country. 'We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market,' the company said in a statement. 'Lotus Cars is continuing normal operations, and there are no plans to close the factory.' The Financial Times reported on Friday that the company, which is controlled by Chinese carmaker Geely Automobile Holdings Ltd., planned to stop manufacturing at its Hethel site in the UK, which could endanger 1,300 jobs. Lotus said in a statement to the newspaper at the time that it paused production from mid-May to manage inventories amid supply chain issues related to US tariffs. Once renowned globally for producing brands such as Mini and Jaguar, the UK car industry has been in decline for years, with Brexit and high energy costs adding to its challenges. The closure of Lotus's plant would have dealt yet another blow to the UK economy, following closures by other companies such as Honda and Ford. On Saturday, the FT said UK government officials had reached out to Lotus and Geely executives and Business Secretary Jonathan Reynolds is expected to speak to the car company on Sunday. The government declined to comment to the newspaper. Lotus said it has invested significantly in its UK operations over the last six years and remains committed to the country. The UK is its largest commercial market, according to the statement. This article was generated from an automated news agency feed without modifications to text.
BBC News
10 hours ago
- Business
- BBC News
How Staffordshire pottery sector reacted to industrial strategy
"Pathetic", "a missed opportunity", "a four out of 10 at best" – these were some of the phrases used by the pottery industry to describe the government's industrial 10-year plan announced on Monday confirmed 7,000 businesses would see electricity bills slashed by up to 25% from 2027, while 500 firms would get a 90% cut in network charges from 2026 under the British Industry Supercharger some in Stoke-on-Trent and Staffordshire – the heart of the UK ceramics industry – cautiously welcomed it as a "start", many have been left Secretary Jonathan Reynolds said the sector was "foundational" to the UK and would benefit from the measures. Three firms in Stoke-on-Trent have collapsed since the start of 2025 – Royal Stafford, Heraldic Pottery and Moorcroft, though the latter was recently bought by the founder's companies, workers and unions have been calling on the government to support the industry, which has become beset by rising energy prices and falling sales. After the spending review came and went, ministers including Ed Miliband said support would be revealed in the Industrial following its announcement, many questioned why ceramics was barely mentioned in the document and wondered where the actions were regarding the cost of gas – the dominant energy source in the association Ceramics UK accused the government of misleading and misunderstanding the UK chief executive Rob Flello said: "This represents a missed opportunity to back one of the UK's most enduring and strategically important manufacturing industries."Fifth-generation ceramicist Emily Johnson, owner of Barlaston-based 1882 Ltd, had previously described the industry as being "on its knees".On the industrial strategy, she said: "Pathetic, is a word. I think that we've been let down again."But you know what, Stoke is resilient and we are not going to get the support that we need from them so we're just going to have to do it ourselves." Beverley Berry was one of the 57 workers at Moorcroft who lost her job, and she has been campaigning for government help ever said she was left "disappointed" by the strategy and questioned whether it was all worth it."I feel quite pessimistic about it. When I first heard the news and thought it was imminent that we were going to help, I thought it wasn't all in vain," she Laver, CEO of Staffordshire Chamber of Commerce, gave the strategy a "four out of 10 at best" and said businesses needed support "now"."Stoke-on-Trent is only mentioned once on page 41 – that's it," she said. "If we were the steel industry, I think we would have had much more support thrown at us and we don't want to see more businesses go to the wall." There were those who were cautiously optimistic, including Portmeirion boss Mike Raybould, who said the measures were "a start" but called for faster action."It's good that they're recognising and finally talking about the UK ceramics industry," he told BBC Radio Stoke."But we need to see the detail, we need to see faster action and I suspect we probably need to see more support as well."While the support with electricity bills was welcome, Mr Raybould said firms wanted to see support with gas prices too, describing it as the more "dominant" form of energy in the new owner Will Moorcroft, grandson of founder William Moorcroft, also said the measures were "a start" but were unlikely to make a huge difference."There's still a lot of work to be done and, without getting political, there could be quicker decisions that could be made to help business, whether it's national insurance or business rates," he said. 'Foundational sector' In his statement in the House of Commons, Reynolds said ceramics was "recognised as a foundational sector" in the strategy,"Its principal request is about energy prices. There are some ceramics businesses - I accept not that many - that get the supercharger [discount] and will get the more generous rate."He said, however, the costs of a lot of those businesses did not match the intensity test the supercharger discount was based on."That is exactly why the British industrial competitiveness scheme has been designed in such a way that they will benefit from it, and that will be a game-changer for them," he gas prices, he said they were projected to fall "from the very significant level that they have been at" in future financial years. Follow BBC Stoke & Staffordshire on BBC Sounds, Facebook, X and Instagram.
Telegraph
a day ago
- Business
- Telegraph
Foreign investment in Britain falls to record low under Labour
Foreign investment into Britain plunged to a record low last year, despite a drive by ministers including Rachel Reeves and Jonathan Reynolds to drum up cash overseas. The number of inbound foreign direct investment (FDI) projects dropped to 1,375 last year, down 12pc from the 1,555 in 2023-24, according to data from the Department for Business and Trade. It represents the lowest level on records dating back to 2008. The investments created 69,355 jobs last year, the department said, the smallest number since the pandemic year of 2020-21. The figures underline the challenges faced by the Government as it seeks to attract international cash to Britian. Ministers have tried to present the UK as a prime location for business, including by hosting a high-profile International Investment Summit in October that featured a speech from Sir Keir Starmer and a performance by Sir Elton John. Other efforts include the Chancellor's trip to China in January, intended to revive economic links, and the Business Secretary's tour of the Gulf states to try to improve relations with nations with significant sovereign wealth funds. Relations with the Gulf states were harmed in September when then-transport secretary Louise Haigh called P&O Ferries a ' rogue operator ', an accusation that risked £1bn of investment in Britain by the company's owner, Dubai's DP World. The political and legal wrangling over the UAE's bid to become a partial owner of Telegraph Media Group has also affected Britain's reputation in the region. Joe Marshall, the chief executive of the National Central for Universities and Business, said the quality of the FDI coming into Britain was also deteriorating. 'The latest data is particularly concerning in high-value, strategically important sectors,' he said. 'The UK saw a 43pc drop in creative and media projects, a 20pc fall in life sciences, biotechnology and pharmaceuticals, and a 5pc decline in ICT investments – all vital to driving productivity, digital transformation and industrial modernisation. FDI into research and development also fell by 26pc. 'FDI is not just capital – it brings global talent, international partnerships, and long-term confidence in the UK economy. Strengthening investment will be essential to deliver the Industrial Strategy and realise the UK's ambition for innovation-led growth.' American investors accounted for the largest share of FDI in Britain last year, accounting for 329 of the projects. Another 106 came from India, 83 from Germany and 68 from France. Some major global investors have praised the UK in recent months, boosting Labour's efforts to improve Britain's standing on the global stage. Larry Fink of BlackRock called the UK 'undervalued' and said his company was investing 'across the board'. Jamie Dimon, the chief executive of JP Morgan, praised the Government's 'pro-growth agenda', while Jon Gray, the president of Blackstone, said there were 'encouraging' signs. The Government said it is focused on bringing investment into the country. A spokesman said ministers were 'laser-focused on targeting the highest-impact, job-creating wins across the UK, which is why the value of our FDI projects has gone up over the past year as we seek quality over volume. 'Our modern Industrial Strategy has introduced ambitious plans to drive growth and investment across every nation and region of the UK, ensuring our country is the best place to invest and do business. 'We've secured well over £100bn of investment over the past year, showing our Plan for Change is already delivering, and we'll continue to work with business to ensure we're making working people better off.' The FDI figures were published alongside separate data showing that British businesses were struggling as the economy weakens. Some 17pc have no cash reserves to rely on, the highest share since the Office for National Statistics began this quarterly survey in 2020.
Daily Mirror
2 days ago
- Business
- Daily Mirror
Firm part owned by mega rich UK family wants taxpayer cash to save factory
Business Secretary Jonathan Reynolds hit out at conglomerate Associated British Foods as it launches closure plans while talks continue An industry giant part owned by one of Britain's richest families yesterday ratcheted-up pressure on the government for taxpayers' money to save one of its factories. Associated British Foods, better known for owning high street fashion chain Primark, kicked off a consultation to close its Vivergo Fuels plant near Hull, with the loss of 160 jobs. The site makes bioethanol, which is used in petrol. ABF says the plant is losing £3million a month and blamed the government for failing to tackle an influx of cheap bioethanol from abroad, which to set to worsen under Labour 's trade deal with US President Donald Trump. But the move to an 'orderly wind-down' drew criticism from Business Secretary Jonathan Reynolds, given negotiations are ongoing. Speaking to reporters at the British Chambers of Commerce annual conference in London, he said: 'We are willing to engage with them and potentially put government money into a restructure. I regret Vivergo's decision to start consultations as to let the workforce go and close the plant. It is premature because we are in good faith in those negotiations.' The plea for government money comes despite ABF having a stock market value of £14.6billion, and making more than £1.9bn profit last year. The Weston family was ranked sixth in this year's Sunday Times Rich List, worth £17.7bn. They own a just under 21% stake in conglomerate ABF's majority shareholder. George Weston is chief executive of ABF. Chancellor Rachel Reeves said last week "the answer can't always be yes" when industries request support. But it comes days after the government revealed its flagship Industrial Strategy to boost investment in the UK. Insiders said the timing of the consultation was that ABF wanted to conclude the process, if needed, by the end of its financial year. Bioethanol is a "green" alternative used in fuels such as petrol and diesel. It is a plant-based material that is produced by fermenting and distilling crops such as wheat and corn. The Vivergo plant began operating in late 2012. The future of Britain's other major bioethanol producer, German-owned Ensus in North Yorkshire, is also unclear. In a statement, ABF later added: 'ABF cannot continue to absorb losses at the plant. That is why a timely solution is vital. Our clear preference is to find that solution through this process and to get back to running a business that can thrive in the long term."
