Lotus says it will keep Norfolk plant open as US car exports resume

The business secretary, Jonathan Reynolds, has received assurances from the sportscar brand Lotus that its factory in Norfolk will remain open, as UK car exporters prepare to resume shipments to the US.

- Lisa O'Carroll Julia Kollewe Jasper Jolly

Reynolds held talks with the manufacturer and its Chinese owner, Geely, yesterday, after reports suggested it was considering closing its plant in Hethel, Norfolk - which could have jeopardised 1,300 jobs.

After the meeting, 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".

The UK's trade agreement with Donald Trump comes into force today, cutting tariffs on cars. Shiploads of Minis, Aston Martins and Range Rovers are preparing to set sail.

Vehicle shipments across the Atlantic were down more than half in May after Trump's imposition of a 25% tariff on 3 April on top of an existing 2.5% levy.

However, as of one minute past midnight US time today - 5am in the UK - that has been reduced to 10% for cars, and UK manufacturers expect pent-up demand to be unleashed.