Fiat Is Desperate For Americans To Buy Its Only Car

Stellantis has extended the production pause of the Fiat 500e until the start of November due to weak orders. This follows an initial production halt last September 13, which should have ended by October 11. With the extension, Fiat’s historic Mirafiori factory will not be producing the electric city car for the whole month of October.

In line with this, company CEO Carlos Tavares will be meeting with an Italian parliament committee next week to provide a clear picture concerning Stellantis’ production in Italy, Reuters reports. The chief executive previously warned the Italian government of the poor demand for EVs, reflecting the global sales slowdown experienced by every automaker.

Nobody’s Buying The Tiny Electric City Car

Fiat started out strong with the 500e, moving over 185,000 units worldwide in February and selling out the first allocations prior to the model’s first shipment to North America. However, things quickly took a drastic turn after that, with the automaker reporting a lack of orders since last month. Evidently, demand for the 500e hasn’t improved since the first production shutdown, with Stellantis telling trade unions that the EV market in Europe is “in deep trouble.”

In the US, Fiat only sold 204 units of the 500e during the first six months of the year, which was quite the opposite of the company’s initial positive outlook. The company currently offers huge discounts on the EV – equaling almost a third of its MSRP – signifying that the company still has inventories that need moving.

What’s The Plan?

Like other automakers that feel the waning EV demand, Stellantis previously committed to developing a better battery for the Fiat 500e, as well as producing a hybrid version at the Mirafiori plant starting from 2026. The automaker is investing $110 million in this development, which it reiterated in light of recent events.

It remains to be seen whether Tavares’ meeting with the Italian parliament will bear fruit to benefit EV production in the country. Of note, the Italian government employed a $1 billion subsidy program earlier this year to help support the switch over to greener vehicles – a move also seen in other countries, including the US.

Source:
Reuters