British-built cars will have more parts sourced from within the UK under plans to insulate the automotive industry from the potentially devastating effects of a hard Brexit.
The Sunday Times reported that leading figures in the industry said that manufacturers were looking to the British supply chain because of the prospect of expensive tariffs being imposed on cross-border trade.
At present almost two thirds of parts in British-built cars come from abroad, with the proportion as high as three quarters in vehicles such as the Vauxhall Astra. In some cases, parts are said to zig-zag across the Channel as many as 30 times during the production process.
With a clean break from the EU emerging as the most likely outcome of Brexit negotiations, industry sources said that a target had been set to source up to 65% of car components from domestic suppliers within a decade.
That would mirror the situation in Germany. The government is backing the drive through the Automotive Investment Organisation, established in July 2013 to encourage suppliers to relocate to the UK.