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The long term future of a major vehicle plant and 1,500 jobs could be put in jeopardy if part of the Brexit treaty is not renegotiated, its plant director has warned.
Luton Vauxhall director Mark Noble said he was confident, however, the “massive challenges” could be overcome.
But he said with 70% of vans being exported into mainland Europe, tariffs risked its competitiveness.
The government said it was working with the EU to find a solution to the issue.
Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, warned it could face tariffs of 10% on exports to the EU due to rules on where parts are sourced from.
Mark Noble, who is also UK lead for manufacturing at Stellantis, said: “If 45% of the components of our vans are not from the EU, then you would incur a tariff.”
From next year, 45% of the value of an electric car should originate in the UK or EU to qualify for trade without tariffs. This will rise to 65% in 2027.
He told BBC Politics East’s Luton special the firm was “working with the UK government to try and relax those rules”.
“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,” 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.”
Mr 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.”