DOES LOTUS STILL HAVE A FUTURE IN THE UK OR NOT?

After contradictory messages emerged recently, we take a closer look

- NICK GIBBS

Uncertainty surrounds the future of Lotus in the UK, with conflicting reports, statements and sources suggesting that the sports car maker is preparing to close its long-standing Hethel base and move production to the US.

That heart-stopping news broke early in the morning of 27 June, when a source with impeccable connections to Lotus UK told Autocar that the order had come from China to prepare its historic manufacturing facility in Hethel for closure.

A second source backed up that bombshell, claiming Lotus was investigating moving sports car production to the US.

Separately, further reports from a different source confirmed that Hethel was indeed on the chopping block, threatening the 1300 jobs there.

By the following day, however, Lotus issued a statement that "there are no plans to close the factory", pointing out that the UK was "the heart of the Lotus brand". On 29 June, secretary of state for business and trade Jonathan Reynolds met with Lotus to receive assurances that the plant would be safe.

Relief that Lotus wouldn't close its facility after almost 70 years was underpinned by a feeling of unease. What just happened? Was Hethel really under threat? Lotus was certainly keen to move production to the US, as had been confirmed by CEO Feng Qingfeng on the company's earnings call just two days earlier.

The statement from Lotus, while clear that there was to be no shutdown, also left some room for manoeuvre. "We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market," it stated.

The phrase 'evolving market' is a mild way of saying that Lotus has been hit hard by slower than expected demand for luxury EVs. Since Geely bought a majority stake in Lotus in 2017, the Chinese giant has bet heavily that it could leverage the marque's storied past to create a sporting luxury brand.