The mini Fiat 500e electric car was once expected to make a breakthrough in the urban electric car segment, but now it has not achieved the expected sales. This has forced Stellantis to extend the closure time of the production line at the Mirafiori factory - which has been suspended since mid-September.
Despite poor sales, Stellantis remains steadfast in its investment strategy in this electric car model. Accordingly, the company has announced a plan 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 costs, to help this model compete better in the market.
In addition, Stellantis is also researching and developing a hybrid version for the Fiat 500e, expected to launch in late 2025 or early 2026. This hybrid version, called Fiat 500 Ibrida, will help attract more customers, in the context of a strong increase in demand for hybrid cars, in contrast to the stagnation of the pure electric car market.
At the same time, Stellantis hopes that launching the hybrid version will not only help boost sales for the Fiat 500 line but also fill the void left by internal combustion engine models after their decline.
The hybrid version is also expected to be a solution to help Fiat continue to compete in the urban car segment, especially as plug-in cars are becoming more and more popular.
Mr. Carlos Tavares - CEO of Stellantis, will meet with the Italian government to discuss the future of the car production lines in this country to cope with the company's current difficult situation.
Speaking about the current situation, Mr. Tavares said: "The complex situation of the world and European auto 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 Topolino were seized by Italian police in May 2024, because the Italian flag stickers on the car door were said to be able to create misunderstandings about the origin of production. In fact, Fiat Topolino is being produced in Morocco, a North African country.
In this situation, Stellantis is having to consider long-term strategies to both maintain competitive advantage and ensure cooperation with local authorities.
Therefore, the closure of the Fiat 500e electric vehicle production line in Mirafiori may be only a temporary step for the company. However, this shows that Stellantis is facing a major challenge in adjusting production operations and meeting market demand.
