According to the BBC, sports car manufacturer Lotus is thinking of closing its UK facility in favour of opening a new one in the US. This action would jeopardise 1,300 jobs at its Hethel, Norfolk, headquarters.
When questioned about any intentions, Lotus declined to comment. The Financial Times was the first to report on the plans, but sources inside the firm informed the BBC that the situation is being reviewed and that moving manufacturing to the US is being considered. It follows the temporary suspension of Hethel manufacturing owing to disruptions created by the imposition of tariffs on automobile imports into the United States.
America is a significant market for Lotus, but tariffs that compel US dealers to pay 25% taxes on imports of automobiles and auto components pose a danger to the company’s operations. According to data released on Friday, the UK auto industry’s exports to the US have decreased by half as a result of certain automakers stopping shipments due to President Donald Trump’s tariffs.
Manufacturers have been required to pay the higher rate thus far, as the agreement between the Trump administration and the UK government to reduce tariffs on automobiles built in the UK and entering the US to 10% is not expected to take effect until the end of June.
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