Fiat, the Italian carmaker, is caught in “the perfect storm” of adverse market conditions and will increase the sale price of its cars and agricultural machinery in line with higher commodity costs, Sergio Marchionne, its chief executive, said on Tuesday.

“We will pass on all these raw material price hikes – all,” he told a conference hosted by the Aspen Institute in Rome. “Thank God we are not the biggest [carmaker],” Mr Marchionne said, displaying graphs showing precipitous price rises for steel, aluminium, rubber, plastic, glass and other materials.