Sportscar maker Lotus has declared it has "no plans" to close any factory after it emerged the company was considering setting up a new plant in the US. The BBC understands the iconic manufacturer had beenconsidering endingproductionat its headquarters in Hethel, Norfolk, which would put 1,300 jobs at risk. In astatement on X, it said: "Lotus Cars is continuing normal operations, there are no plans to close any factory," but admitted it was "actively exploring" options in the global market. The story was first reported by the Financial Times, but sources within the company have told the BBC the situation was under review and they were considering taking production to the US. It was understood Jonathan Reynolds, Secretary of State for Business and Trade, was set to hold talks with the owners of the company. It comes after production in Hethel was temporarily suspended due to disruption caused by the introduction of tariffs on cars being imported to the US. America is a major market for Lotus but tariffs threaten its business, as sellers in the US are required to pay 25% on imports of cars and car parts. Its statement added: "Lotus remains committed to the UK, to our customers, employees, dealers, suppliers, as well as our proud British heritage." Follow Norfolk news onBBC Sounds,Facebook,InstagramandX.
Lotus has 'no plans' to close any factory
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"Lotus Confirms No Plans to Close Factories Amid US Expansion Considerations"
Bbc News
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TruthLens AI Summary
Lotus, the renowned sportscar manufacturer, has publicly stated that it has "no plans" to close any of its factories, despite reports suggesting that the company was contemplating the establishment of a new production facility in the United States. The concern arose after it was reported by the Financial Times that Lotus might consider ceasing operations at its headquarters in Hethel, Norfolk, which could endanger approximately 1,300 jobs. In a statement released on social media platform X, the company reassured its stakeholders that it is maintaining normal operations and is not planning any factory closures. However, they acknowledged that they are "actively exploring" opportunities in the global market, indicating a willingness to adapt to changing economic conditions and market demands.
The backdrop to this development includes recent challenges faced by Lotus, particularly the disruption caused by tariffs imposed on cars imported to the US market. With America being a significant market for Lotus, the 25% tariff on imports of vehicles and auto parts has raised concerns about the company's profitability and operational viability in the region. The temporary suspension of production at the Hethel facility was a direct response to these tariff-related challenges. In light of these circumstances, Jonathan Reynolds, the Secretary of State for Business and Trade, is expected to engage in discussions with Lotus's owners to address these pressing issues. Despite the potential for expansion in the US, Lotus has emphasized its commitment to the UK, highlighting its dedication to customers, employees, dealers, suppliers, and its British heritage.
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