The company that owns Vauxhall says it will halt UK investment while the Brexit outcome remains uncertain.Read more
Business correspondent, BBC News
Vauxhall-owner PSA says it wil not invest in Ellesmere Port and Luton while the outcome Brexit remains unclear.
That's according to Michael Lohscheller, chief executive of Opel which is part of the same group.
"We cannot make investment decisions without knowing what will happen," Mr Lohscheller said at the Frankfurt Motor Show.
"Brexit could disrupt supply chains in Europe as well as Britain. There are jobs and investments at stake. Everybody needs to be aware of the responsibility," Mr Lohscheller said.
PSA Group, the French car maker, has reported a 12.8% drop in sales in the first half of the year.
Between January and June it sold 1.9 million vehicles. In Europe sales were 0.3% higher, but sales everywhere else fell.
In China deliveries slumped 60%. The company said it is working on "action plans" with its Chinese partners to tackle issues with its business there.
However, shares are up 1% in Paris.
Vauxhall owner PSA says Ellesmere Port could carry on building the new Astra model car, but only if Brexit goes well. It says:
"Groupe PSA has today announced its intention to manufacture the next generation Astra in two plants in Europe. The group has confirmed that the Russelsheim plant will manufacture Astra and that it is planned that the second plant will be Ellesmere Port in the United Kingdom."
"The decision on the allocation to the Ellesmere Port plant will be conditional on the final terms of the UK’s exit from the European Union and the acceptance of the New Vehicle Agreement, which has been negotiated with the Unite Trade Union."
French car group PSA - whose brands include Peugeot, Citroën, Opel and Vauxhall - has denied reports that it is close to buying Jaguar Land Rover.
Responding to the report, PSA said: "We deny this information.
"Groupe PSA is not in a hurry for any acquisition and can stand alone. We are generating the cashflow necessary to pay for our future."
However, the company added: "If an opportunity comes, like Opel-Vauxhall, we will consider it."
Shares in Euro car-makers are on the up this morning on reports that PSA Group and Fiat Chrysler are exploring a partnership to build motors in Europe.
According to Bloomberg, the companies are holding preliminary discussions to collaborate on the development of a super platform.
On German's Dax index, Daimler has motored up 3.79% while Volkswagen is up 2.98%.
BMW is up 1.99%, while in France, Peugeot has climbed 3.04%.
Citroen enthusiasts rallied round to help with its transformation, donating parts from all over the world.
Citroen's classic 2CV turns 70 this year.