British sportscar manufacturer Lotus has denied reports that it plans to close its factory in eastern England, following a Financial Times article suggesting that 1,300 jobs could be at risk.
“Lotus Cars is continuing normal operations, and there are no plans to close the factory,” the company said in an emailed statement on Saturday.
The company added that it is “actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.”
Lotus, owned by China’s Geely and Malaysia’s Etika Automotive, manufactures vehicles in both the UK and China. The reported potential closure of its Hethel facility in Norfolk had raised concerns about further strain on Britain’s already struggling automotive industry.
According to industry data released on Friday, UK vehicle production has fallen 32.8% year-on-year, partly due to tariffs imposed by the United States.
The Financial Times also reported that the UK government had offered support to Lotus in light of the factory closure rumors. However, a spokesperson for the Department for Business and Trade declined to confirm this, stating: “The government does not comment on speculation or the commercial affairs of private companies.”
While the UK has negotiated a trade deal with the U.S. to lower tariffs on a quota of exported vehicles, the agreement does not take effect until the end of June. In the meantime, carmakers continue to face reduced output and exports to both the U.S. and European Union.
