Vauxhall could bid farewell to Luton after over 100 years if part of the Brexit treaty is not renegotiated, the BBC has revealed.
The plant’s director Mark Noble said new tariffs on exports to the European Union could risk its competitiveness, with 70 per cent of vans being exported into mainland Europe.
From next year, 45 per cent of the value of an electric car will have to originate in the UK or EU to qualify for trade without tariffs. This will rise to 65 per cent in 2027.
Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, has warned that the rules could jeopardise the future of Vauxhall in Luton.
Noble, who is also UK lead for manufacturing at Stellantis, said: “If 45 per cent of the components of our vans are not from the EU, then you would incur a tariff.”
He told BBC Politics East’s Luton special the firm was “working with the UK government to try and relax those rules”.
Noble said the firm saw Luton as “integral” to Vauxhall, which provides 1,500 direct jobs and 300 to 400 indirect jobs in the area.
“If we have a 10 per cent tariff that makes our vans more expensive going into Europe. If we are not cost competitive then we jeopardise our long term future,” he said.
But he added: “There are massive challenges, but I am confident we can overcome these challenges. To be sustainable in any industry you have to be cost competitive.”
Noble said the firm saw Luton as “integral” to Vauxhall, which opened a plant in the Bedfordshire town in 1905.
A government spokesperson 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.”
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