Ford Motor Co. fears cash-strapped European governments may go back on promises to offer consumers incentives to buy electric cars, making EVs unaffordable to most buyers.
Governments in countries such as the UK and France have said they will offer subsidies of up to 5,000 euros to kick start sales of environmentally friendly electric vehicles.
Ford Chief Financial Officer Lewis Booth said austerity measures now being introduced by governments to reduce budget deficits may affect subsidies.
"We believe government assistance will be a challenge in the next few years," Booth said at the Paris auto show, adding that electric cars sales will not take off without incentives.