Ford is calling for an extension of post-Brexit trade rules until 2027 to avoid disruption to electric vehicle (EV) disruption.

The Blue Oval has invested £1.6 billion at its passenger car factory in Cologne, Germany and a further £380 million at its e-motor production site in Halewood, Merseyside.

New rules from next year will mean 45% of the value of an EV being sold in the EU has to originate from the UK or the EU to avoid a 10% tarriff.

However, UK and EU vehicle manufacturers are currently sourcing a lot of their EV batteries from Asia and this can account for a large proportion of the cost of producing an EV. It would mean UK and EU manufacturers would likely attract these 10% as they can't ramp up battery production quickly enough.

Tim Slatter, Ford Britain chair, said: “Today the industry does not have sufficient supply of locally-sourced batteries and components to meet demand.