The Fiat 500e electric minicar was expected to be a game changer in the electric city car segment, but has now failed to deliver the expected sales, forcing Stellantis to extend the shutdown of its Mirafiori plant, which has been idle since mid-September.
Despite the poor sales, Stellantis remains steadfast in its investment strategy for this electric vehicle, announcing plans to invest 100 million EUR (equivalent to 110 million USD) to develop a new high-performance battery for the Fiat 500e.
It is known that the company's goal is to improve the vehicle's operating range and at the same time reduce the cost, in order to help this model compete better in the market.
In addition, Stellantis is also developing a hybrid version for the Fiat 500e, expected to launch in late 2025 or early 2026. This hybrid version, called the Fiat 500 Ibrida, will help attract more customers, in the context of strong demand for hybrid cars, in contrast to the stagnant state of the pure electric car market.
At the same time, Stellantis hopes that the launch of the hybrid version will not only boost sales of the Fiat 500 line but also fill the gap left by the internal combustion engine models after they were discontinued.
The hybrid version is also expected to be the solution to help Fiat continue to compete in the urban car segment, especially when plug-in cars are becoming more and more popular.
Carlos Tavares, CEO of Stellantis, will meet with the Italian government to discuss the future of the car production lines in the country to deal with the company's current difficult situation.
Speaking about the current situation, Mr. Tavares said: "The complex situation of the world and European automotive industry requires Stellantis to react quickly."
On the other hand, Stellantis is currently facing a conflict with a part of the Italian government regarding the choice of production location. The government of this country believes that Italian branded cars should be produced domestically before being sold to domestic customers.
This became more tense after 134 Fiat Topolinos were seized by Italian police in May 2024, because the Italian flag stickers on the doors were said to be misleading about the origin of production. In fact, Fiat Topolinos are being produced in Morocco, a North African country.
Faced with this situation, Stellantis is having to consider long-term strategies to both maintain its competitive advantage and ensure cooperation with local authorities.
So the closure of the Fiat 500e electric car production line in Mirafiori may be just a temporary move for the company, but it shows that Stellantis is facing a major challenge in adjusting production operations and meeting market demand.
