The UK is lobbying the EU over a Brexit trade deal deadline that carmakers have warned pose a threat to UK industry.
Prime Minister Rishi Sunak said the UK was “engaged in a dialogue” with the EU about a looming rule change that could affect UK electric car hopes.
Carmakers in Britain and the EU have been asking for the rule change to be pushed back.
Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, has said that its UK factories are at risk.
The company has previously committed to making electric cars in the UK, but now says these plans are under threat.
It has warned it could face tariffs of 10% on exports to the EU due to rules on where parts are sourced from.
From next year, 55% 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.
Stellantis said it was “now unable to meet these rules of origin” due to the recent surge in raw material and energy costs.
Speaking to reporters on a trip to Japan, Mr Sunak the approaching deadline was “something that car manufacturers across Europe, not just in the UK, have raised as a concern”.
“And as a result of that we are engaged in a dialogue with the EU about how we might address those concerns when it comes to auto manufacturing more generally,” he added.