Fiat suspends 500e production due to low demand

Fiat has temporarily stopped building its 500e due to low demand for the electric city car.

The Italian brand’s parent company, Stellantis, said that 500e production at its Mirafiori factory in Turin would be suspended for four weeks from 13 September as it dealt with issues facing all European car makers.

The group said: “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.”

While EV sales continue to grow in the UK, they have slumped in some other European territories. Across Europe as a whole, they were down 10% in July, largely due to a 37% slump in Germany – the region’s biggest car market.

European brands have also faced tough competition from Chinese manufacturers whose imported models are often significantly cheaper than those built in Europe. The discrepancy has led to the recent tariff battle between the EU and China.

In July Fiat announced a £3,200 price cut to the 500e as it looked to stimulate sales and help it hit its ZEV Mandate target. It also revealed its next all-electric model – the Grande Panda.

Stellantis said that it was “working hard to manage at its best this hard phase of transition”. That includes examining upgrades to the Mirafiori factory where the 500e is built. Italian unions have repeatedly called for the site to be redeveloped to address falling production levels.

“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.

As part of its efforts to revitalise Mirafiori, Stellantis is investing 100 million euros in developing a new battery for the 500e, which it says should cut costs and offer much-improved range.