Fears of iconic British carmaker closing UK factories sparks urgent government meeting

Labour is set to engage in urgent discussions with historic British carmaker Lotus following fears that its owners are considering shuttering their UK operations.

This comes after reports emerged that Chinese owner Geely was considering halting production at the Hethel plant in Norfolk, which would have threatened 1,300 jobs. Privately owned automotive conglomerate Geely also includes Volvo and Polestar among its major brands.

However, Lotus has since issued a statement asserting it has "no plans" to shut down the factory. Jonathan Reynolds is expected to hold an urgent meeting with the company later today, according to information obtained by PA.

Since 2017, the British sports car brand has been majority-owned by Chinese multinational Geely. The Financial Times had previously reported that the company was contemplating closing its UK operations and opening a new plant in the US.

On Saturday, Lotus attempted to alleviate concerns by stating that it remains "committed" to the UK, which it described as its largest commercial market in Europe and the "heart" of the brand.

"Lotus Cars is continuing normal operations, and there are no plans to close the factory," it declared.

"We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.

"We have invested significantly in R&D and operations in the UK, over the past six years. Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage."

A Government spokesperson responded: "The Government does not comment on speculation or the commercial affairs of private companies."