Lotus, the renowned British sports car manufacturer, has firmly denied reports suggesting the closure of any of its factories, particularly its flagship facility in Hethel, Norfolk. This assurance comes after speculation arose following a Financial Times article that hinted at potential job losses for up to 1,300 employees if the Hethel plant were to shut down. In an official statement, Lotus clarified that it is “continuing normal operations, and there are no plans to close the factory,” directly addressing concerns among workers and the broader automotive industry.

The rumors of a possible shutdown were fueled by recent challenges facing the UK automotive sector, notably the impact of new tariffs imposed by the United States. These tariffs have contributed to a significant 32.8% year-on-year drop in UK vehicle production, intensifying worries about the future of British car manufacturing. Lotus, which is owned by China’s Geely and Malaysia’s Etika Automotive, produces vehicles in both the UK and China, making it susceptible to global market fluctuations and trade policy changes.

Despite these headwinds, Lotus emphasized that it is “actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.” The company’s leadership has acknowledged ongoing discussions about expanding operations, possibly including new facilities abroad, but has reiterated its commitment to its UK base. The UK government has reportedly offered support to Lotus to help safeguard jobs, though official confirmation of such intervention has not been provided by the Department for Business and Trade.

The uncertainty surrounding Lotus’s future in the UK has prompted heightened attention from industry observers and government officials alike. While a new trade agreement between the UK and the US aims to alleviate some of the tariff pressures, it will not take effect until the end of June. In the meantime, Lotus’s public statements are intended to reassure employees, suppliers, and customers of its ongoing presence and investment in British manufacturing.