Lotus has 'no plans' to close any factory

Lotus announced it has "no plans" to close any factories in a statement

Sportscar maker Lotus has declared it has "no plans" to close any factory after it emerged the company was considering setting up a new plant in the US.

The BBC understands the iconic manufacturer had been considering ending production at its headquarters in Hethel, Norfolk, which would put 1,300 jobs at risk.

In a statement on X, it said: "Lotus Cars is continuing normal operations, there are no plans to close any factory," but admitted it was "actively exploring" options in the global market.

The story was first reported by the Financial Times, but sources within the company have told the BBC the situation was under review and they were considering taking production to the US.

It was understood Jonathan Reynolds, Secretary of State for Business and Trade, was set to hold talks with the owners of the company.

It comes after production in Hethel was temporarily suspended due to disruption caused by the introduction of tariffs on cars being imported to the US.

America is a major market for Lotus, but tariffs threaten its business, as sellers in the US were required to pay 25% on imports of cars and car parts.

The company said: "Lotus remains committed to the UK, to our customers, employees, dealers, suppliers, as well as our proud British heritage."

MP Ben Goldsborough said his "commitment is unwavering" in ensuring the Hethel site stays open

Ben Goldsborough, the Labour MP for South Norfolk, issued a statement on Facebook and said he was "deeply concerned by the recent rumours surrounding a potential closure of Lotus's Hethel facility".

He said he had been in "telephone conversations" with members at Lotus as well as government ministers.

He added: "While discussions continue, I want to be absolutely clear: I will do everything in my power to ensure that the Hethel facility remains operational and that Lotus continues to thrive in Norfolk."