Stellantis considers selling Maserati as orders go into reverse

Meanwhile the wider Stellantis group said profits have halved, sending shares in the world’s fourth-biggest carmaker down by 10pc.

Sales fell heavily in the US and Europe and the company said it was considering cutting prices in order to boost demand.

Mr Tavares called the figures “disappointing and humbling”, but said the company was going through a “very transitional period” ahead of a blitz of new models.

“This is a bump on the road that we are now fixing,” he said.

Many carmakers are suffering from weak demand, particularly for electric vehicles, as higher interest rates hit sales of new vehicles. Meanwhile they are facing growing competition from Chinese manufacturers.

Nissan, the Japanese manufacturer, said on Thursday that its quarterly profits had fallen by 99pc and cut its full-year profit forecasts by a fifth.

Mr Tavares said his company had triggered a “strategic review” of its UK business because of the country’s zero-emission vehicle (ZEV) mandate, which requires manufacturers to gradually raise the proportion of electric cars they sell, starting at 22pc this year.

“We have a specific problem to solve in the UK,” he said. “The UK has shown to be with the ZEV mandate, a very difficult market, [it] is hurting significantly our business model. And this is triggering a strategic review of our business model, including the manufacturing footprint. 

“We have two plants in the UK making BEVs [battery electric vehicles], as the UK government is asking for more BEVs. We cannot be in a position where our business model is damaged by the ZEV mandate.”

Mr Tavares said the company had been discussing the mandate with the British Government and that there had been an “intensive and productive dialogue” but that “so far, we don’t have the answers we need”.

His comments echo warnings from Maria Grazia Davino, Stellantis’ UK managing director, who said in June that the company could close plants at Ellesmere Port and Luton, where it makes vans, unless the Government relaxes its rules. Labour has pledged to restore the 2030 ban on new petrol and diesel cars.