Stellantis has paused production of the fully electric Fiat 500 for four weeks due to declining demand in the European EV market. This decision stems from a significant drop in orders, affecting all manufacturers in the region.
The Fiat 500 is produced in Turin, Italy, with the production halt beginning on September 13. Stellantis emphasized their commitment to navigating this challenging transition period.
Earlier in the year, Stellantis had already reduced production of the electric 500. To stimulate demand, the company is investing €100 million in Mirafiori for the development of a new type of EV battery and is increasing investments in hybrids.
Italy has introduced a €900 million plan to boost the electric vehicle market through subsidies, although there is a disagreement between the government and automakers regarding the subsidy approach. Global sales delays in EVs, influenced by varying green subsidy policies, have compelled manufacturers to adjust their EV strategies.