The high costs of building electric vehicles is a threat to jobs in the automotive sector, according to Carlos Tavares, who heads the company that owns Peugeot and Fiat.

Electric vehicles are 50 percent more expensive to produce than conventional cars, the Stellantis CEO told Reuters.

As the price rise would be too high to be absorbed by many consumers, manufacturers will either have to save money by reducing their workforce or lowering quality, he said.

Tavares said timelines imposed by governments to ban the sale of petrol and diesel vehicles were "putting the industry on the limits." 

The UK has said only electric vehicles can be sold after 2030, while the European Union and California are among jurisdictions setting a 2035 date.

Stellantis was formed this year from a merger between Fiat and Peugeot. It also owns the Citroen, Jeep, Alfa Romeo and Chrysler brands.