Business Secretary meeting Lotus after reports of plans to scrap UK carmaking
The Business Secretary will hold talks with Lotus after the carmaker appeared to shelve plans to shut its UK operations.
After reports that Chinese owner Geely was planning to stop manufacturing at the Hethel plant in Norfolk, putting 1,300 jobs at risk, Lotus issued a statement saying it had 'no plans' to close the factory.
Jonathan Reynolds will speak to the company on Sunday, the PA news agency understands.
The British sportscar brand has been majority-owned by Chinese multinational Geely since 2017.
The Financial Times had reported it was considering shutting up shop in the UK and in favour of a new plant in the US.
On Saturday, Lotus sought to assuage concerns with a statement that it remains 'committed' to the UK, which it called its largest commercial market in Europe and the 'heart' of the brand.
'Lotus Cars is continuing normal operations, and there are no plans to close the factory,' it said.
'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.'
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Business Secretary, Jonathan Reynolds MP, meets Lotus after reports of plans to shut Norfolk factory
The Business Secretary is holding talks with Lotus after the sportscar maker appeared to shelve it's plans to shut UK operations. After reports that Chinese owner Geely was planning to stop manufacturing at the Hethel plant in Norfolk, putting 1,300 jobs at risk, Lotus issued a statement saying it had 'no plans' to close the factory. Jonathan Reynolds MP is speaking to the company on Sunday, alongside local MP, Ben Goldsborough. The British sportscar brand has been majority-owned by Chinese multinational Geely since 2017. The Financial Times had reported it was considering shutting up shop in the UK and in favour of a new plant in the US. On Saturday, Lotus sought to assuage concerns with a statement that it remains 'committed' to the UK, which it called its largest commercial market in Europe and the 'heart' of the brand. 'Lotus Cars is continuing normal operations, and there are no plans to close the factory,' it said. '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.'
NBC News
2 hours ago
- NBC News
Can this game maker figure out Trump's China tariffs before they sink him?
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Looking ahead Linden's concerns ultimately go beyond getting his game off the ground. The company where he works his day job is also facing headwinds from the tariffs. Should something happen to it or his role there, Linden fears he won't be able to successfully transition into another field in what has been a gradually weakening labor market. 'I don't have the work experience to change careers very easily, so I've had a lot of fear over what happens if these tariffs put the toy company out of business,' he said. 'And then if they put the new game out of business, I don't have a lot of marketable skills outside of the toy industry, and I can't imagine people are going to be hiring like crazy anytime soon.' Linden said he has no objection to making the game in the United States and has even begun taking orders for a version that is American-made — though at a $5 higher price point. Linden said matching Chinese quality is significantly more expensive and more logistically complicated. 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The Guardian
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- The Guardian
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The UK business secretary, Jonathan Reynolds, is holding urgent talks with the management of Lotus, as the British sportscar maker insisted that it had no intentions of shutting its Norfolk factory. The emergency meeting was understood to be under way on Sunday morning. Reynolds contacted Lotus bosses after it emerged that it was considering ending production of its sportscars in the UK and moving it to the US – a move that would jeopardise 1,300 jobs. Lotus's Chinese owner, Geely, was thought to be looking at options including manufacturing its Emira sportscar in the US, and permanently stopping production at its factory in Hethel, Norfolk. Such a decision by a prestige brand would be embarrassing for the government. Labour's industrial strategy, published last week, singled out automotive production as among the strategic sectors it wants to support. In a statement on Saturday, Lotus insisted 'the UK is the heart of the Lotus brand', and its largest commercial market in Europe. It said: '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.' Lotus paused production at the Hethel factory in mid-May to manage inventories and supply chain issues caused by the US's extra 25% tariffs on car imports. Other UK carmakers halted exports to the US but have since resumed them, while waiting for a UK-US trade deal reached on 8 May to be implemented. On Monday, US tariffs are due to be reduced to 10%. Lotus has the capacity to manufacture up to 5,000 Emira sports cars a year, which have a starting price of £75,000, at the Norfolk factory. About 60% of them are shipped to the US. It also makes an electric hypercar at the site in smaller numbers, which is priced at £2.3m plus. Ben Goldsborough, the Labour MP for south Norfolk, said on Facebook he was 'deeply concerned' by the rumours surrounding a potential closure of Lotus's Hethel facility. He said he had held telephone conversations with the management team and government ministers to 'emphasise just how vital this site is – not only to the heritage of British automotive engineering, but to the local economy and skilled workforce that call Hethel home'. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'These early-stage conversations have confirmed the seriousness of the situation,' he said, vowing to champion every feasible avenue including financial support, incentives and strategic partnerships. Qingfeng Feng, the chief executive of Lotus Technology, told investors this week that the company was looking at shifting production to the US. 'At this moment, we are discussing with our strategic partners in the US on localisation plans in order to avoid the influence of the US tariff,' he said, according to a transcript of the call hosted by the data company Alphasense. 'With our strategic partners, we had an in-depth discussion around our US landscape and we believe localisation is a feasible plan.'
