Lotus: UK Operations Prioritised as Tariffs Ease

Lotus is prioritising its UK operations, confirming to Business Secretary Jonathan Reynolds that its Norfolk factory will not be shut down, as US tariffs on car imports are set to ease. This decision secures 1,300 jobs and reaffirms the sports car maker’s commitment to its Hethel plant despite earlier considerations of a US production move.
The company had paused production in mid-May due to the burden of the 25% US tariffs. With these tariffs now reducing to 10% on Monday, the economic feasibility of exporting from the UK, where a significant portion of Emira sports cars are sent to the US, significantly improves. This positive shift has allowed Lotus to confidently reiterate its dedication to its UK base.
A Department for Business and Trade spokesperson confirmed that Reynolds “was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant.” Lotus itself underscored its UK ties, stating “the UK is the heart of the Lotus brand” and its largest European market.
The news provides stability for the local workforce and bolsters the UK’s automotive manufacturing reputation. The government’s ongoing support, including a £2.5 billion fund for capital and R&D, demonstrates a concerted effort to foster growth and competitiveness in the sector.