► Lotus scrambles to reassure UK government Hethel is safe
► Emira production could be shifted to the USA in localisation bid
► Sales slowdown reflects UK current industry dilemma
Lotus has told the UK government it has no plans to shut its Hethel factory, after rising speculation the sports car maker could shift production to the US to sidestep tariffs, improve localisation, and cut costs.
The urgent reassurance comes as Britain’s car industry reels from its worst May production figures since 1949, highlighting just how precarious the landscape has become for niche performance brands.
Business Secretary Jonathan Reynolds met Lotus and Chinese owner Geely Holding on Sunday after reports that the Emira sports car could be built in the USA rather than Norfolk. A Department for Business and Trade spokesperson said Reynolds had been ‘reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.’
However, Geely has confirmed it’s exploring American manufacturing. Qingfeng Feng, CEO of Lotus Technology, told investors the company was looking at ‘localisation plans’ in the US to avoid tariffs, describing it as ‘a feasible plan’.
Lotus paused production at Hethel in mid-May to manage inventory and cope with supply chain disruption triggered by the US’s extra 25% import tariffs. The Norfolk factory can build up to 5000 Emiras a year, around 60% of which are shipped to America. It also produces the £2.3m Evija electric hypercar in small numbers. Meanwhile, Lotus’s electric Eletre SUV and Emeya saloon are built in China.
The uncertainty surrounding Hethel comes as the broader UK car industry struggles to keep pace. Figures from the Society of Motor Manufacturers and Traders (SMMT) show UK car production plunged nearly a third in May to just 49,810 units, the lowest May total for 76 years outside of the 2020 pandemic. Exports to the US halved after new tariffs hit earlier this year, though a UK-US trade deal taking effect this month will drop those duties to 10% on up to 100,000 vehicles annually.
Christopher Sawyer, former communications director for Lotus Cars USA Inc, said that Geely may be overestimating Lotus’s brand firepower. ‘Geely Holding has acted as though Lotus is the modern equivalent of Porsche or Ferrari. It’s not. Lotus is a past-tense car company while there are present or even future-tense concerns,’ he told CAR. ‘Add in the geopolitical nonsense of mandating EVs and you have a recipe for disaster. The Emira is a wonderful vehicle, but the pricing is ridiculous and the branding non-existent.’
Ben Goldsborough, Labour MP for South Norfolk, said he remains ‘deeply concerned’ about Hethel’s future, describing the plant as vital to local jobs and British automotive heritage.
For now, Lotus insists normal operations continue and that the UK remains ‘the heart of the Lotus brand’. But with US tariffs easing and Geely weighing its options, the question hanging over Hethel is how long the historic factory can remain at the centre of Lotus’s global plans.
Keith is the Editor of Parkers. During his career he has been the editor of Classic Car Weekly, Modern Classics and Honest John Classics, as well as writing for CAR, Practical Classics, Octane, Autocar and The Independent among others. Keith lives in rural Lancashire and enjoys buying and selling cars and reading and writing about them.
By Keith Adams
Devout classic Citroen enthusiast, walking car encyclopedia, and long-time contributor to CAR
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