Fiat Halts Production of Electric 500e Due to Low Demand

Stellantis will pause production of the Fiat 500e for a month starting September 13 due to weak demand, reflecting broader struggles in the European electric vehicle (EV) market where sales have declined. This decision follows a 24% drop in Fiat 500 sales compared to last year and a decrease in EV market share to 13.5%. The lack of clear incentives and high prices for electric vehicles are contributing factors to the slowdown, prompting Fiat to develop a hybrid model, the 500 Ibrida, which is expected to be ready by 2026. Stellantis is investing €100 million ($110 million) to improve the battery and production capacity at the Mirafiori plant. The current Fiat 500e has a range of 320 kilometers (199 miles), but the transition to electric vehicles is proving slower than anticipated. The challenges faced by Fiat are indicative of a wider trend affecting many automakers as they navigate the evolving EV landscape.