Britain's car industry risks losing out even if there is a post-Brexit trade deal with the EU, according to documents seen by the BBC.
Car parts from Japan and Turkey used in the UK will not be treated as British, so some exports may see higher tariffs.
In a letter, Britain's chief Brexit negotiator says the UK has failed so far to get the car parts deal it wants, and "obviously cannot insist on it".
Nissan, the Japanese company with 7,000 UK workers and a large factory in Sunderland, urged UK and EU "negotiators to work collaboratively towards an orderly balanced Brexit that will continue to encourage mutually beneficial trade".Copyright: Reuters
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Carmaker Nissan will delay the production of the new Qashqai in Sunderland until next summer, the Daily Mirror has reported.
The plant received more than £50m to make the vehicle, but halted car production in March due to the coronavirus pandemic.
A Nissan spokesperson would only tell the BBC: “Preparations continue for the launch of the new Qashqai in Sunderland, which represents a £400m investment in the plant.
"We have not yet announced a date for the next-generation model, but look forward to sharing some exciting news in the coming months."
14 people who work at the Nissan car factory in Sunderland are self-isolating after a member of staff tested positive for Covid-19.
Nissan says it has worked closely with Public Health England since the confirmed case at the plant.
The staff member is recovering at home.
The company says it has carried out a deep clean of the area where they work.
By Justin Harper
BBC International Business Correspondent
Nissan has been named in a lawsuit which alleges up to 1.4 million vehicles sold in Britain could be equipped with illegal defeat devices to cheat emissions tests.
They include a petrol-powered version of one of the UK's best-selling family cars, the Nissan Qashqai.
The law firm behind the case, Harcus Parker, claims that some cars produced up to 15 times the legal level of nitrogen oxides when used on the road.
Nissan and Renault, which is also named, deny the claims. Click here to read the full story.Copyright: Getty Images
By Theo Leggett
Business correspondent, BBC News
Nissan has announced it will not be extending the contracts of almost 250 temporary workers at its Washington plant.
Production resumed earlier this month but the car-maker said it is facing a period of reduced volumes.
A statement said: "Nissan continually adjusts production to meet market demand.
"Given current business conditions in Europe we are facing a period of reduced volumes in our Sunderland plant.
"Unfortunately, therefore, we will not be extending the contracts of 248 temporary manufacturing staff at the plant."
By Simon Jack
BBC Business Editor
This is good news. For today, Nissan workers can breathe a sigh of relief that Sunderland has been recognised as an important production facility for the future.
However, lots of questions remain. Nissan has identified Japan, North America and China as "core" markets - not Europe. In Europe, Nissan's alliance partner Renault will assume a greater role and influence in Europe at a time when the global car market will have to make very aggressive cost reductions.
The question may arise in the future - who is really in charge in Europe? If it's Renault, what does that mean for future investment in a post-Brexit UK? Nissan alone said it had capacity to make seven million cars when it only needs capacity for five million.
Only plants that can demonstrate an ability to be ruthless about cost will continue to attract investment. As Professor David Bailey tweeted this morning: "Once again, the workforce will have to pull out all the stops to work flexibly to get costs down".
So, some belt tightening ahead, but workers in Sunderland will be thankful they are not in the same position as their Spanish and Thai counterparts, who are seeing plants closed down.
BBC Business News
Nissan is closing its factory in Barcelona with the loss of about 2,800 jobs, according to the Spanish government.
The closure could cost Nissan, which has a major UK plant in Sunderland, up to €1bn (£898m), the government said.
Car sales have been hit by the virus pandemic, while manufacturers are investing heavily in electric vehicles.
Nissan is part of a three-way alliance with Renault and Mitsubishi, which are restructuring global operations to enable them to work more closely.
Even before the Covid-19 outbreak, Nissan's sales and profits had been falling, forcing it to pull back from the ambitious expansion plan of its now ousted leader Carlos Ghosn.Copyright: Getty Images