Fiat Chrysler is concerned consumers could be left exposed to price hikes as a result of NAFTA negotiations.
Speaking on the sidelines of the North American International Auto Show in Detroit, Fiat Chrysler's Chief Executive Sergio Marchionne told CNBC on Monday: "The consumer, in the absence of a realignment of production facilities, will pay a price. It is not insignificant."
Last week, Fiat Chrysler announced the company would shift production of heavy-duty pickup trucks from Mexico to the U.S. by 2020. That decision should go some way to alleviating some of U.S. President Donald Trump's concerns about the dislocation of production capacity out of the country, Marchionne said.
The move should also reduce the risk those same trucks would be hit with a 25 percent tariff if talks over the North American Free Trade Agreement (NAFTA) were to unravel.
The Trump administration has threatened to withdraw from NAFTA, which is heavily utilized by automakers with production and supply chains spread across the U.S., Canada and Mexico. Fiat Chrysler's CEO said it is more expensive for automakers to manufacture heavy-duty vehicles in the U.S. rather than Mexico.