Stellantis pauses Fiat 500 EV production on poor demand

ROME -- Stellantis will suspend production of the full-electric Fiat 500e for four weeks due to sluggish demand.

The global slowdown in sales of electric vehicles, partly due to diverging policies on green incentives, has pushed automakers worldwide to adjust their EV plans.

"The measure is necessary due to the current lack of orders linked to the deep difficulties experienced in the European electric (car) market by all producers, particularly the European ones," Stellantis said in a statement.

The 500e minicar is made in Turin, the birthplace of the Fiat brand, at the historic Mirafiori plant.

The suspension of production will start on Sept. 13, Stellantis said, adding it was "working hard to manage at its best this hard phase of transition."

As part of these efforts, the automaker said it is investing €100 million euros ($110 million) in Mirafiori to adopt a higher performance battery and will produce a hybrid version of the 500 electric model, starting between 2025 and 2026.

Unions have long been asking Stellantis to revitalize the Mirafiori site, where output has slumped in recent years, by introducing a new high-volume, inexpensive car at the plant.

"The Mirafiori complex is undergoing a deep transformation, with the aim of making it a true global innovation and development site, a key choice if we are to meet the challenge of the transition to sustainable mobility to which we are called," Stellantis said.

Italy earlier this year launched a $1 billion plan helping drivers switch to cleaner vehicles, with subsidies for purchases of full-electric cars but Rome and the automaker have been at odds over the governments approach to incentives.

Fiat joins a long list of automakers that have been forced to adjust their electrification plans because of the EV sales slowdown. Toyota, GM and Volvo have all had to make changes to adapt to the current situation.