Mercedes-Benz had been considering moving production to the UK ahead of the EU referendum in 2016, but decided against the move after the vote for Brexit, the carmaker’s chief executive has revealed.

Dieter Zetsche, outgoing head of the brand, told Paris Motor Show attendees that he had begun negotiations with Nissan regarding potentially using its Sunderland plant to build Mercedes-Benz cars.

“Before Brexit there was one project where we were looking at an option of producing cars in Sunderland together,” he said.

Mercedes-Benz owner Daimler formed an alliance with Nissan and Renault in 2010.

Earlier this year, Nissan announced that it was cutting hundreds of jobs at the Sunderland operation, due to falling demand for diesel vehicles.

Mr Zetsche shared no further details about the now-abandoned plan, The Times reported.

A number of other carmakers issued warnings at the Paris event, with Toyota stating that a no-deal Brexit would lead to a temporary stoppage in UK production, primarily at its Burnaston plant.

Johan van Zyl, the Japanese company’s Europe president, said it was difficult to predict how long the stoppage period would last.

Meanwhile, Maxime Picat, executive vice president for Europe at Vauxhall owner PSA, said leaving the EU with no deal would disrupt production.

“We’ve been doing all we can to develop our UK business, restore Vauxhall and Opel profitability, reinvesting in Luton and improving our sites’ competitiveness in order to help them face up to an uncertain future,” he said.

“But there are limits. Those limits are customs barriers and the loss of freedom of movement, for people and goods. If we get to that point, we will be obliged to take measures.

“If we suddenly have to start manufacturing for the UK in the UK, and for Europe in Europe, there will necessarily be an impact on UK production.”

Several carmakers have called for Brexit negotiators to avoid a no-deal scenario, warning that such a departure would hit production and investment in the market.

BMW recently said it would bring a planned shutdown of its Oxford plant forward to begin on the same day the UK leaves the EU, in a bid to minimise the potential disruption a no-deal Brexit would create.