Stellantis has announced that it is temporarily shutting down production of the Fiat 500e electric vehicle due to weak demand.
This decision is part of a broader trend of slowing electric vehicle sales worldwide, prompting many automakers, including Stellantis, to reassess their electrification strategies. Industry experts attribute this slowdown primarily to inconsistent government incentives across different markets.
“The measure is necessary due to the current lack of orders linked to the deep difficulties experienced in the European electric market by all producers, particularly the European ones,” Stellantis said in a statement to Reuters.
Launched in 2020, the Fiat 500e initially garnered modest success, selling 10,000 units in its first year. However, sales quickly surged, peaking at 66,000 units in 2022. Despite a slight dip in 2023, demand remained strong.
Despite early promise, the 500e’s momentum has stalled in 2024, and its U.S. launch appears to be a commercial disappointment. Production at the historic Mirafiori plant has plummeted by 83% in the first eight months of this year compared to the same period in 2023. With only 18,500 cars produced so far, annual production is projected to fall to around 20,000 units.
In response to the declining sales of the electric city car, Stellantis is developing a hybrid version that is expected to be available in Europe between 2025 and 2026. The hybrid will be manufactured alongside the EV at the Mirafiori plant, which is undergoing a €100 million renovation to accommodate Stellantis’ revised electrification plans.
