Business secretary to meet Lotus chiefs amid doubts over future of operations

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"Business Secretary to Discuss Future of Lotus Operations Amid Job Concerns"

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The UK business secretary, Jonathan Reynolds, is scheduled to meet with Lotus executives following mounting concerns about the future of the carmaker's operations in the UK. This meeting comes in light of recent reports suggesting that Geely, the Chinese multinational that has owned Lotus since 2017, was contemplating the closure of its Hethel plant in Norfolk. Such a closure would jeopardize approximately 1,300 jobs. In response to these concerns, Lotus issued a statement asserting that the company has 'no plans' to shut down its factory, emphasizing its commitment to maintaining operations in the UK. The company described the UK as its largest commercial market in Europe and referred to it as the 'heart' of the brand, indicating the importance of its British heritage to its identity and operations.

Lotus has attempted to alleviate fears regarding its future by reaffirming its dedication to the UK workforce and its ongoing investments in research and development. The company highlighted that it is actively pursuing strategic options to enhance its operational efficiency and competitiveness in an evolving global market. A government spokesperson has stated that the government refrains from commenting on the commercial affairs of private companies, thereby maintaining a neutral stance on the situation. As the meeting approaches, stakeholders within the automotive industry and the local community will be closely monitoring the discussions between Reynolds and Lotus, hoping for a resolution that secures the future of the Hethel plant and protects jobs in the region.

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The business secretary, Jonathan Reynolds, 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 tostop 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.

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 in favour of a new plant in the US.

On Saturday, Lotus sought to ease 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.”

A government spokesperson said: “The government does not comment on speculation or the commercial affairs of private companies.”

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Source: The Guardian