FIAT FACES HUGE BACKLASH OVER EV SWITCH
Stellantis has suspended the production of the Fiat 500e in Turin, Italy for four weeks, starting from September 13, 2024. According to the automaker, the production shutdown was due to the unfavorable demand for the 500e, particularly in Europe, and that it's "working hard to manage at its best this hard phase of transition." The number of employees affected by the month-long shutdown was not disclosed by the company.
2024 Fiat 500e
"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, cited by Automative News. Evidently, the slump in EV demand isn't good news for automakers making a switch to a full EV lineup.
Solution? Going Hybrid
With the recent EV demand slowdown, Fiat has announced a decision to go hybrid in order to sell more 500s that are made at its Mirafiori plant. It's reportedly investing $110 million to bolster this development â an investment shared with the development of a better battery for the 500e. The hybrid Fiat 500 is expected to be produced between 2025 and 2026, and is projected to boost the plant's output to 200,000 units a year.
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The switch to making hybrid cars isn't new to the industry, with a long list of automakers already announcing similar actions in light of the recent slump in EV demand. Stellantis even previously announced a $75 million investment to produce new combustion engines in America as part of over $406 million worth of money to support its multi-energy strategy.
Fiat 500e In America
The Fiat 500e's disappointing demand contrasts previous news of the model selling out its first allocations in a week. What's more disappointing is that Fiat has only sold 204 units of the 500e in the US during the first six months of the year. The first US-bound 500e units rolled out of the Mirafiori plant in February.
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It remains to be seen whether the hybrid 500 will also reach the US, but given the 500e's less-than-stellar sales performance, it could use some help to attract new city-dwelling customers that may be in the market for a hybrid instead of an EV.
2024-09-16T00:51:45Z dg43tfdfdgfdSource: Automotive News