Unlock the publisher’s digest free
Roula Khalaf, editor -in -chief of the FT, selects her favorite stories in this weekly newsletter.
Lotus reversed his plans to put an end to the production of cars in the United Kingdom after the government reported that he was willing to provide support for the British sports car brand in difficulty.
In a press release on Saturday, Lotus, controlled by Chinese car manufacturer Geely, said that he “actively explored strategic options” to improve the efficiency of its operations and global competitiveness.
“Lotus Cars continues normal operations, and it is not planned to close the factory,” he said.
The Financial Times reported on Friday that the company planned to stop manufacturing in its Hethel factory in Norfolk, putting 1,300 jobs in danger.
Two people knowing the situation said that officials from the British government had contacted Lotus and that Geely managers shortly after the report was published. “Everyone has panicked,” said one of the people.
British affairs secretary Jonathan Reynolds is expected to speak in Lotus on Sunday, said a person close to the government.
A government spokesperson said: “The government does not comment on speculation or commercial affairs for private companies.”
Geely refused to comment.
A closure of the Hethel factory would have shown a new blow to the production of British cars, after the closures of Honda and Ford in the last decade.
In order to stimulate the automobile and other advanced people, the manufacturer Prime Minister, Sir Keir Starmer, has promised to reduce high energy costs in the recently unveiled industrial strategy of the Labor government.
Lutus said on Friday that he had interrupted production in the United Kingdom from mid-May to manage inventories and supply chain problems related to American prices after suspending his Emira sports car expeditions to the United States.
But people knowing the discussions said that the company had struggled to pay its suppliers in recent weeks and that it suffered from the low demand for vehicles and growing stocks, which have put pressure on its Hethel factory in the United Kingdom as well as the factory belonging to Geely in Wuhan, China, which manufactures Lotus cars.
“They face deeper problems than the problem of American prices,” said a person close to society.
Lotus did not immediately respond to a request for FT comments.
Feng Qingfeng, CEO of Lotus Technology, listed by the United States, which has majority participation in the UK activities, said in senior executives earlier this week to write a proposal to withdraw from manufacturing in the United Kingdom. He also told investors that Lotus wanted to locate production in the United States.
Lotus has reduced jobs in recent years while a certain number of senior executives have left, including his European chief Dan Balmer and the commercial director Mike Johnstone.
In the three months and June, Lotus Technology declared an operating loss of $ 103 million, against a loss of $ 233 million a year earlier, while it delivered 1,274 vehicles, down 42%.
Its Hethel factory, which was created in 1966, has an annual capacity of around 10,000 cars while its Wuhan factory can produce around 150,000 vehicles.
