Lotus reverses plan to pull out of UK after government offers fresh support

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Lotus reflected its plans to end the production of cars in the UK after the government indicated that it was ready to provide support for the troubled British sports car brand.

In a statement on Saturday, Lotus, which is controlled by the Chinese auto industry, Jelly, said it “explores the activity of strategic options” to improve the efficiency of its global competitive operations and ability.

“Lotus continues regular operations cars, and there are no plans to close the factory,” she said.

The Financial Times reported on Friday that the company is planning to stop manufacturing in its factory in Norfolk, which endangers 1,300 jobs.

Two people were aware of the situation that UK government officials contacted Pots and Jelly’s executives, shortly after the report was published. One of the people said: “Everyone feels panic.”

A person close to the government said that the UK’s business minister, Jonathan Reynolds, is expected to speak to Lotus on Sunday.

A government spokesman said: “The government does not comment on speculation or commercial affairs of private companies,” a government spokesman said.

Geely refused to comment.

The closing of the Hethel factory would have a new cars for the UK’s production, after the closure by Honda and Ford over the past decade.

In an attempt to boost cars and other advanced prime minister, the advanced Prime Minister, Sir Kerr Starmer, promised to reduce high energy costs as part of the recently unveiled industrial strategy for the Labor Government.

On Friday, Lotus said that production had stopped in the United Kingdom from mid -May to manage stocks and supply chain issues related to US definitions after having suspended her sports car shipments to the United States.

But people with knowledge of discussions said that the company has struggled to push its suppliers in recent weeks, and was suffering from low demand for vehicles and increased stocks, which led to pressure on both its factory in the UK as well as the factory owned by the jelly in Wuhan, China, which makes Lotos cars.

A person close to the company said: “They are facing deeper problems than the US tariff issue,” said a person close to the company.

Lotus did not immediately respond to the FT request for comment.

Feng Qingffing, CEO of Lotus technology listed in the United States, who has a controlling business class in the United Kingdom, told senior executives earlier this week to submit a proposal to withdraw from manufacturing in the United Kingdom. Investors also told that Lotus wanted to localize production in the United States.

Lotus has reduced jobs in recent years, while a number of senior executives, including its European president, Dan Palmer and the chief commercial official Mike Johnson.

In the three months to June, Technology Lotus reported an operating loss of $ 103 million, compared to a loss of $ 233 million in the previous year, while she handed over 1,274 vehicles, a decrease of 42 percent.

Its ability on the Hethel Factory, which was created in 1966, is about 10,000 cars while the Wuhan factory can produce about 150,000 cars.