One of the most popular vehicle manufacturers has confirmed that it will be keeping its operations in the UK, despite rumours it could leave.
Reports surfaced that Lotus Cars was considering stopping manufacturing at its Hethel plant in Norfolk, which could have put 1,300 jobs at risk.
The Financial Times reported that Lotus had paused production in the UK from mid-May to deal with issues caused by President Donald Trump's auto tariffs.
On "Liberation Day" in April, Trump imposed a 25 per cent tariff on all manufacturers exporting to the US, although Prime Minister Keir Starmer was able to secure a trade deal with the US.
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Lotus confirmed that it was committed to its operations in the UK, despite rumours suggesting it could move production abroad
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The tariff has now been slashed from an effective rate of 27.5 per cent to just 10 per cent, allowing brands to resume trading with the United States.
Lotus has now come out to confirm that the brand will remain in the UK, which it described as "the heart of the Lotus brand".
It stated that the UK was home to the manufacturer's global design centre, production of its sports cars, motorsport operations and Lotus Engineering.
A spokesperson for the brand said: "Lotus Cars is continuing normal operations, and there are no plans to close the factory.
Lotus confirmed it was 'actively exploring strategic options'
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"We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market."
In 2024, Lotus delivered more than 12,000 vehicles, with total revenue reaching an impressive £670million, representing growth of 36 per cent year-on-year.
The brand oversaw the rollout of the Eletre and the start of deliveries of the Emeya, with its biggest market, Europe, seeing a staggering year-on-year growth rate of 179 per cent.
This was followed by China, which contributed to 25 per cent of total deliveries, and North America with 21 per cent.
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The spokesperson added: "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."
Lotus, which is majority owned by Chinese brand Geely, also operates the Lotus Technology HQ in the Chinese city of Wuhan.
The factory was opened in 2022 and produced the first all-electric Eletre, which was designed at the Lotus Tech Creative Centre in the West Midlands.
It recently announced the 2026 Emira V6 SE and Emira Turbo. The vehicles have been praised as having "exhilarating performance and driving pleasure".
Prices of the Emira V6 SE will start at £96,500, while the Emira Turbo will cost £79,500.
In April, the brand announced that it would be cutting up to 270 jobs across the company, citing "evolving market conditions".
It specifically pointed to the pressure of US tariffs and shifting consumer demand for sports cars, adding that it would place greater emphasis on "collaboration in technology, engineering, and operations".
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