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 are required to pay 25% on imports of cars and car parts.

Its statement added: "Lotus remains committed to the UK, to our customers, employees, dealers, suppliers, as well as our proud British heritage."