Stellantis NV STLA Chief Executive Officer Carlos Tavares warned of more auto plant closures in the year.
Tavares said auto makers will be pushed to shut shops if high electric vehicle prices made vehicle markets to shrink.
The remark comes as EV manufacturers in the U.S. have raised prices to counter inflation, Reuters reported.
Stellantis closed the assembly plant in Belvidere, citing high EV costs.
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The company said electrification costs will be a huge challenge for the auto market.
“If the market shrinks we don’t need so many plants,” said Tavares.
“Some unpopular decisions will have to be made.”
Also Read : Stellantis Eyes Stake In Hydrogen Mobility Company Symbio
Price Action: STLA shares are trading lower by 1.19% at $14.99 in premarket on the last check Friday.
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