HONDA has warned Theresa May to keep the UK in the customs union.

The Prime Minister is due to meet with her cabinet at Chequers today to discuss key Brexit issues. Ahead of the meeting, the European government affairs manager of Honda Motor Europe, Patrick Keating, said:

“Honda is looking to minimise the disruption Brexit will pose to our business, and to maintain our productivity and competitiveness in this time of change. Our view is that the best way to do this, and to provide certainty and clarity to business – as we have said for quite some time now – is for the UK to stay within the European Customs Union.

“Staying in the customs union would mitigate increased administrative burdens and costs, avoid the imposition of tariffs on trade with the EU and help to minimise frictions and delays at the border.”

Honda's Civic plant in South Marston employs 4,000 staff, and the company believes production times could be increased by up to nine days if a hard Brexit is given the green light.

Theresa May's cabinet will meet today at Chequers, the PM's country residence to try and thrash out agreement on what the government wants form Brexit.

They will be presented with a plan at Chequers today that outlines an independent trade policy and friction-free trade with the EU. A White Paper setting out more details will be published after the meeting.

Recently car manufacturers Jaguar Land Rover and BMW warned that they may cut back at their British plants if no satisfactory deal with the EU is reached.