Following Nissan demands for government compensation for any tax barriers raised as a result of the UK leaving the EU, MEP Jonathan Arnott has stressed the need for Brexit negotiations to begin urgently.
And he has also spoken of his belief that the EU will not put tariffs on British-made cars.
"The longer it takes for us to start negotiating a deal with the European Union, the longer the current uncertainly will continue,” said Mr Arnott, Euro-MP for the North East, where Nissan have a plant in Sunderland.
It is the company’s biggest factory in Europe, with a capacity of 500,000 vehicles, representing a third of Britain’s total car output, and it employs 6,700 workers.
Mr Arnott said, “It is not in the interests of the European Union to put tariffs on British-made cars, because then European car manufacturers would be forced to pay tariffs when they sell their cars to us.
“Nobody expects a tariff regime to be imposed, and to alleviate Nissan's concerns - and indeed, the concerns of the big German car manufacturers - it's important to get a deal done with the European Union as quickly as possible.
“Under a tariff regime the European Union would lose out, since we're massive net importers from the European Union and we'd charge them more than they charge us.
“In theory we could pay every penny of every tariff for Nissan and every other company out of the extra revenue tariffs would bring in, and still have income to spare. That's why the EU would never go for such a deal,” he said.