Vauxhall's factory in Luton is under threat as new Brexit tariffs on electric car could jeopardise its future, according to plant director Mark Noble.

The Daily Telegraph said the Bedfordshire site, owned by Stellantis, faces taxes on vehicles exported to mainland Europe, making the factory less competitive.

Stellantis has warned it could encounter tariffs of 10% on its exports to the EU due to regulations governing the origin of parts used in production.

Noble said: “If 45% of the components of our vans are not from the EU, then you would incur a tariff.”

“If we have a 10% tariff, that makes our vans more expensive going into Europe. If we are not cost competitive, then we jeopardise our long term future.”

The Luton factory, which employs 1,500 people, specialises in van production with 70% of its output exported to mainland Europe.

The factory chief said Stellantis considers the site “integral” to Vauxhall's operations.

According to the report, industry leaders have warned the UK could miss out on GBP100bn of electric car production unless the government takes decisive action to level the playing field with the EU.

Mike Hawes, chief executive of SMMT, said: “The Government has set the industry tough targets and we are committed to meeting them.”

“But we are in the middle of the most fiercely competitive investment landscape of a generation and need a UK response, urgently, using every policy, every fiscal and regulatory lever, to make Britain the most attractive place to invest.”

Responding to the concerns, a government spokesman said: “The business and trade secretary has raised concerns about the 2024 Rules of Origin changes for electric vehicles and their batteries with the EU and is determined to find a joint UK-EU solution that ensures the UK remains one of the best locations in the world for automotive manufacturing.”