Automakers will risk losing pricing power as chip supplies recover, Tavares commented yesterday at the Ces technology fair in Las Vegas.

The manager's statements come at a time when poor affordability threatens the U.S. electric vehicle market as major manufacturers are raising prices due to high inflation.According to a survey conducted by Deloitte, more U.S. consumers want to buy an electric vehicle but are concerned about rising prices.

According to the survey, conducted between September and October 2022, "about seven out of ten potential EV buyers in the United States expect to pay less than $50,000 for their next vehicle."

Last month Stellantis said it will halt operations at its Belvidere, Illinois, assembly plant indefinitely because of the high cost of electric vehicles.

Similar decisions "will be everywhere as long as we see high variable cost inflation," Tavares said.

The auto industry has to absorb 40 percent more costs for electric vehicles, he added.

The company had pointed to the rising costs associated with the transition to electric vehicles as the most impactful challenge for the automotive industry.

"If the market contracts, we don't need as many plants," Tavares said. "Some unpleasant decisions will have to be made."

(Translated by Alice Schillaci, editing Stefano Bernabei)