Η Stellantis discontinues the production of the pure electric Fiat 500e in Mirafiori due to low demand, as the slowdown in global EV sales, due in part to divergent policies on green incentives, has prompted automakers worldwide to adjust their electrification plans.
In particular, Stellantis will suspend production of the fully electric Fiat 500e for four weeks due to sluggish demand.
The global slowdown in electric vehicle sales, partly due to differing policies on green incentives, has prompted automakers worldwide to adjust their electric vehicle plans.
"The measure is necessary due to the current shortage of orders linked to the deep difficulties faced in the European electric (car) market by all producers, especially Europeans," Stellantis said in a statement.
The 500e small car is built in Turin, the birthplace of the Fiat brand, at the historic Mirafiori factory.
Back to hybridisation
The suspension of production will start on 13 September, Stellantis said, adding that it is "working hard to manage this difficult transition phase in the best possible way".
As part of these efforts, the automaker said it is investing 100 million euros ($110 million) in Mirafiori to adopt a higher-efficiency battery and will produce a hybrid version of the 500 electric model starting between 2025 and 2026.
Trade union concern
The unions have long been calling for Stellantis to revitalise the Mirafiori site, where production has declined in recent years, by introducing a new, cheap, high-volume car at the plant.
"The Mirafiori complex is undergoing a profound transformation, with the aim of becoming a true global space for innovation and development, a key option if we want to meet the challenge of the transition to sustainable mobility to which we are called," said Stellantis.
Italy launched a $1 billion plan earlier this year to help drivers switch to cleaner vehicles, with subsidies to buy fully electric cars, but Rome and the auto industry have clashed over the government's approach to the incentives.