The new Fiat 500 seems to be struggling in the market, as Stellantis, the parent company of the Italian Fiat brand, has paused production of the compact city car until November 1 due to low demand.
The outlook for Stellantis isn’t promising. In the U.S., the world’s second-largest car market after China, sales of Dodge and Jeep have dropped, and the company’s international brands are facing similar challenges. To add to its woes, Stellantis recently announced an extension of the production suspension for the Fiat 500 electric car until early November.
Production of the Fiat 500 was initially halted on September 12 at the Mirafiori plant in Italy, with a planned four-week break. However, this stoppage has now been extended by an additional three weeks, totaling seven weeks of halted production.
According to Reuters, this decision aligns with statements from labor unions indicating that Europe’s electric car market is facing significant difficulties.
Despite this pause in production, the Fiat 500 is not being phased out just yet. Stellantis is set to invest over $110 million in the next two years to develop a hybrid version of the car, scheduled to launch next year. This move reflects the company’s strategy to pivot toward a fully electric lineup, addressing concerns over the declining demand driven by the sole reliance on electric power.
Putting the situation into perspective, Stellantis managed to sell just 470 new Fiat 500 s in the U.S. during the first half of 2024. For comparison, back in 2012, which marked the peak sales year for the previous generation of the Fiat 500, 46,999 units were sold. Even in 2020, after the car was discontinued in North America, Stellantis still managed to sell 674 units. This stark contrast highlights the weak demand for the new all-electric model.
In the U.S., this lack of interest is understandable. The new Fiat 500 e offers a range of just 149 miles (240 km) on a single charge and starts at $34,095 (approximately SAR 127,856). These figures do not seem attractive to American buyers. For a similar price, one could opt for the larger Hyundai Kona Electric, which offers a 120-mile (193 km) range. While introducing a hybrid version is a step in the right direction, it might be too little, too late for Stellantis, especially considering the other setbacks the company has been facing. One can only hope that Stellantis finds a way to recover from this challenging period.
