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Lotus boss calls for UK government support as it commits to Norfolk plant

about 2 hours ago
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The boss of the luxury sports carmaker Lotus has called for government support for its UK factory as the Chinese-owned company insisted it will not abandon its British roots.Lotus said it had extended the lifespan of the £80,000 Emira petrol-engined sports car, made by 900 employees in its factory in Norfolk, in order for the brand to continue to serve the US market.Lotus last year prompted concerns for the future of its British factory, after sources said its Chinese parent company, Geely, was considering its closure.Lotus then cut 550 jobs in August.However, Lotus on Tuesday said it wanted to increase sales in the lucrative US market, meaning it will have to rely on sports car sales from its UK factory rather than electric SUVs from its newer, larger facility in Wuhan, China, which faces prohibitive tariffs.

“We definitely want to keep the [Norfolk] factory going and we definitely want it to be better, to grow,” said the Lotus chief executive, Qingfeng Feng.“We are actively discussing with the government, and it is not just on financial subsidies,” he said, referring also to infrastructure around the plant.He was speaking through a translator on the sidelines of a Financial Times conference.The carmaker also said it would sell new Chinese-made hybrid SUVs in Europe and make a new hybrid-V8 petrol supercar, the Type 135, as part of a strategy “reset”.The company had previously promised to produce no more new petrol models, but abandoned that strategy as electric sales lagged behind expectations.

Lotus’s UK factory, based at a former RAF base at Hethel, Norfolk, is building 2,000 cars a year, but has the capacity to make 10,000, according to Feng,He said the UK “would remain as our best option as we have already made heavy investment in the region”,The case for the UK factory has also been helped by lower US tariffs,Lotus makes nearly two-thirds of its sales in the US,The US and UK last year reached a deal to limit tariffs on 100,000 exports of British cars to 10% – a level Feng said was sustainable.

By contrast, Chinese-made cars are effectively shut out of the US.The English engineer Colin Chapman founded Lotus in 1948 with an emphasis on “adding lightness” to its nippy sports cars.Geely, owned by the billionaire Li Shufu, took majority control of Lotus in 2017.Geely has stakes in several European brands, including the UK’s Aston Martin and Germany’s Mercedes-Benz, and controlling stakes in Sweden’s Volvo and Polestar, as well as the London Electric Vehicle Company, the maker of London black cabs.In China, Geely makes vehicles under its own name, as well as under the Lynk & Co and Zeekr brands.

However, Geely was forced into a significant restructuring after overextending itself, raising doubts over the future of struggling factories.Feng said: “Lotus was born in Britain and we will keep it that way,” although the company was still carrying out feasibility studies on building further models such as the Type 135 in the UK.Lotus has held talks with a UK battery producer as part of efforts to localise its supply chain.Several of Geely’s brands have also been hit by the slowing transition to electric cars across Europe, as well as the evisceration of pro-electric vehicle policies by the US under Donald Trump.In response, Lotus has said it will start to sell hybrid versions of its Eletre SUV in Europe by the end of the year.

The Eletre started as a purely electric model, but Lotus has already started selling a hybrid version in China that combines a petrol engine with a battery.Lotus had previously planned to sell 150,000 vehicles a year by 2028, but on Tuesday it said it would aim to sell only 30,000.Feng said: “I must admit the plan was aggressive.”Feng said current UK political turmoil would not impact its investment plans, but added the company would benefit from a closer trade relationship with Europe to help its supply chain.
politicsSee all
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Farage faces questions over failure to declare use of donor’s helicopter

Nigel Farage is facing questions about why he did not declare his use of a donor’s helicopter to travel around Britain for rallies.The helicopter, which was used by Farage as recently as Friday after local elections across Britain, is the property of a company owned by Lorenzo Zaccheo, a businessman who gave Reform £25,000 last year.Farage was pictured in May last year getting off the helicopter in Kent after his party won the county council elections there, and data shows that it has travelled to and from other locations on dates when Reform rallies were being held.When questioned about why Farage had not declared the travel, Reform UK said the flights had been paid for “at commercial rates” and there was “no undeclared registrable interest” arising from those flights.But the party did not respond to follow-up questions about who paid for the flights and whether they were paid for by Farage himself, who may face an inquiry over an undeclared £5m gift he was given by the crypto billionaire Christopher Harborne

about 2 hours ago
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Youth mobility scheme disagreement hampering reset of UK-EU relations

Significant gaps remain in negotiations on the reset in relations between the UK and the EU despite Keir Starmer’s latest pledge to put Britain “at the heart of Europe” after last week’s election drubbing.The UK wants to limit the number of young people from the EU who come into the country as part of a post-Brexit youth mobility scheme to below 50,000, it has emerged.The EU has already rejected a cap and wants unlimited visas with an annual review on numbers instead, to allow an “emergency brake” on the scheme if politically desirable.It is understood that the UK is also unwilling to budge on the issue of “home” fees for EU citizens, although it can argue that this was never a topic in the reset roadmap.Catherine Barnard, a professor of EU law at the University of Cambridge, said in relation to negotiation on the youth mobility scheme: “I fear that things are still very tricky

about 2 hours ago
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Tax cuts and cost of living help proposed by Labour-linked groups allied to Streeting and Burnham

Groups connected to the health secretary, Wes Streeting, and the Greater Manchester mayor, Andy Burnham, have proposed large changes to government policy, giving a sense of how the country may change should either one succeed Keir Starmer.The Labour Growth Group, allied to Streeting, and the Tribune group of Labour MPs, allied to Burnham, have published competing visions for how Britain should be run, including sweeping tax cuts, help with the cost of living and big changes to government machinery.With Keir Starmer under concerted pressure to stand down, the groups are two of a number of Labour-linked organisations that have proposed radical measures as they try to influence the thinking of a future prime minister.In a document entitled An Honest Day, Mark McVitie, the director of the Labour Growth Group, which has connections with Streeting, called for a rise in capital gains tax to pay for a 2p cut in national insurance.The document also called for mayors in England to be given greater powers over tax and spending, for the creation of a new Department of the Prime Minister and for ministers to allow Thames Water to fail

about 4 hours ago
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Minister resigns from Starmer government with call for PM to quit

Miatta Fahnbulleh has become the first minister to resign from Keir Starmer’s government, calling on the prime minister to quit.The communities minister’s resignation came as one of Starmer’s closest aides declined to say whether he would lead Labour into the next election amid mounting calls for him to resign.Darren Jones, a close ally of Starmer, said the prime minister was “listening to colleagues” who were asking him to set out a timetable for departure but would make his own decisions about the way forward, the prime minister’s chief secretary said on Tuesday.He warned the prime minister’s rivals that it was a “gruelling” job. “Anybody who thinks that they can just walk into the job of prime minister and, like the second coming of the messiah, fix all of our problems probably hasn’t really thought carefully enough about how difficult it is,” he said

about 4 hours ago
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Greens’ Zack Polanski admits failing to pay correct council tax on houseboat

The Green party leader, Zack Polanski, has admitted he may have failed to pay the correct council tax while living on a London houseboat.Polanski had faced mounting questions over whether the houseboat, moored in east London, was his primary residence.A Green party spokesperson described the situation as an “unintentional mistake” and said Polanski had “immediately taken steps” to pay any tax owed.The spokesperson said: “Until relatively recently, Zack was living on a houseboat, which came with its own unique practical circumstances and considerations. He has immediately taken steps to pay any council tax he may be found to owe

about 6 hours ago
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Wes Streeting faces narrow road to Labour members’ favour

“Country first, party second” is a mantra Keir Starmer and his cabinet have repeated since being in opposition, seeking to draw a dividing line between Labour and their Conservative predecessors’ inclination for self-destruction.But party members do matter in politics – and a key problem for Wes Streeting, one of those with ambitions to succeed Keir Starmer, is that many of Labour’s do not like him.Just before Labour’s heavy local election losses, a Compass survey of more than 1,000 members found that if they were given a free choice, 42% would pick Andy Burnham to succeed Starmer – against just 11% for Streeting. And whereas Burnham had a 44% favourability rating, only 18% felt the same towards the health secretary.That result put Streeting roughly on a par with Angela Rayner and Ed Miliband – but given those potential candidates and Burnham are firmly to his left, it would appear to suggest that the majority of the party would prefer not to have a candidate in Streeting’s place on the ideological spectrum

about 8 hours ago
sportSee all
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Nicole Kidman, Hugh Jackman … Gout Gout: Australian sprint star features on 60 Minutes in US

about 11 hours ago
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Iga Swiatek finds her flawless best to dismantle Naomi Osaka at Italian Open

about 16 hours ago
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‘You guys wanna see a dead body?’ The slow death of the Philadelphia 76ers’ Process era

about 18 hours ago
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Glamorgan beat Somerset to claim first home win in Division One: county cricket, day four – as it happened

about 19 hours ago
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Is CTE really the main reason behind the rise in NFL player suicides?

about 20 hours ago
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Counties face points deductions for financial losses under strict new ECB rules

about 21 hours ago