The British government is set to intervene in the growing uncertainty surrounding Lotus, as Business Secretary Jonathan Reynolds prepares to meet the company’s senior executives following concerns over the future of its UK operations. The meeting comes after the firm announced plans to end production of its iconic petrol-powered sports cars at its Hethel site in Norfolk, raising fears over more than 1,300 jobs.
The discussions, expected to take place early this week, reflect mounting political and regional pressure on the Chinese-owned manufacturer, which has been transitioning to electric vehicles under the control of Geely, the automotive giant that also owns Volvo and Polestar. While Lotus has promised to build electric models at its modernised facility, doubts remain over the long-term viability of its British base as supply chains and production strategies shift.
The Business Secretary’s intervention signals Downing Street’s broader concern about the erosion of the UK’s automotive heritage and its industrial capacity in an era of global competition and electrification. “We are committed to ensuring that the UK remains a hub for advanced vehicle manufacturing,” a spokesperson from the Department for Business and Trade said on Sunday, adding that the government is in “active dialogue” with Lotus about its operational plans.
For local workers and unions, however, the situation is becoming increasingly tense. Unite the Union has called for clear commitments on job security, skills investment, and guarantees that the shift to electric vehicles will not be used as a pretext for outsourcing or long-term downsizing. There is growing unease that high-value design, engineering, and assembly work could migrate abroad, particularly to Asia.
Lotus, founded in 1948 and famed for its lightweight sports cars and racing pedigree, has long been considered a jewel in Britain’s automotive crown. Yet its financial health has been fragile for decades. The recent pivot to electric mobility under Geely’s ownership had been seen as a chance to revitalise the brand – but insiders suggest mounting production costs and supply chain complexities have cast doubt on those ambitions.
Ministers are under pressure to outline how they will support green automotive investment in Britain more broadly. The collapse of Britishvolt and uncertainty around other EV projects have already raised questions about the government’s industrial strategy. For Norfolk, Lotus’s future is not only a business issue but a cornerstone of regional identity and economic stability.
The outcome of the talks will likely shape the political and industrial narrative around the UK’s transition to electric manufacturing. As the industry pivots to new technologies, the fate of firms like Lotus will become a litmus test of whether Britain can retain both its automotive legacy and its future competitiveness.
REFH – newshub finance
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