Stellantis is temporarily halting production of the all-electric Fiat 500e for four weeks due to lower demand. Earlier this year, working hours at the Mirafiori plant near Turin were reduced for the same reason.

While Stellantis, which also owns Citroen, Peugeot, Jeep and Vauxhall, plans to switch to selling only electric cars in Europe by 2030, its ambitious plans have faced strong headwinds over the past 12 months. Competition from Chinese-built models such as the MG4 and BYD Dolphin has hit demand for the Group’s smaller models while the end of Government subsidies in key European markets has further affected sales. 

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Launched in 2021, the 500e was developed before the formation of Stellantis and rides on a unique platform that is understood to be more expensive to manufacture than others in the Group’s portfolio. As a result, the 500e has always carried a price premium over its electric city car rivals. Despite the recent re-introduction of a new entry-level model equipped with a 24kWh battery, the more usable 42kWh model now costs more than £30,000. Although the 500e has won numerous industry accolades since launch, its high price and modest range has limited its appeal. 

In response, Stellantis is investing €100 million in the Mirafiori plant to upgrade the Fiat 500e with a more powerful battery and to develop a new petrol hybrid version, expected to arrive between 2025 and 2026.

Production of the Fiat 500e has been scaled back several times in the past, partly due to supply chain issues, including battery shortages, and weaker-than-expected demand. Working hours at Mirafiori were previously cut between February and April 2024.

Despite proving a hit with critics, the 500e has been a slow seller for Fiat in Europe