Fiat is halting production of the 500e as it faces a lack of demand for the stylish electric city car. Stellantis has confirmed that the 500e line at the Mirafiori plant in Turin, Italy will cease operations for four weeks from September 13, marking the first time since 2007 that no new 500e will be built in Europe.
"We have taken the measure due to the current lack of orders related to the major problems faced by all producers on the European electricity market, especially the European one," Stellantis emphasizes in a statement to Reuters.
Built in Poland and using a completely different platform than the electric car, the 500 model with an internal combustion engine was discontinued in the summer because it didn't meet new cybersecurity laws and Fiat didn't want to spend extra money to update it. Production of the thermal engine 500 has not completely ceased, as the model is still produced in North Africa, but these versions are not suitable for sale in Europe.
Instead of updating the 500 model with an internal combustion engine and maintaining sales, Fiat decided to create a new hybrid model, namely by redesigning the electric model 500e, which was given a combination of a small internal combustion engine and an electric motor. But that car, which will bear the 500 Hybrid name, won't be ready until late 2025 or, more likely, 2026, so Fiat dealer showrooms will look a little emptier for the next 18 months.
The hybrid model will be produced alongside the electric car at the historic Mirafiori plant, which will undergo a €100 million refurbishment to be ready for Fiat's updated electrification plans.
Fiat is far from the only automaker forced to change its strategy due to much lower demand for electric vehicles than expected. Toyota, GM, Ford and even prestige brands like Aston Martin and Mercedes are extending the life of existing internal combustion vehicles or putting extra money into developing new ones.
