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Stellantis has extended the production pause of the Fiat 500e, due to continued low EV demand.

Originally pencilled to last a month to October 13, the pause will now end on November 1.

This slump in demand has left the European electric car market "in deep trouble”, Stellantis told trade unions.

The brand previously said the slump in sales is “linked to the deep difficulties experienced in the European [EV] market by all producers”.

Fiat parent firm Stellantis said in a statement that the slump in sales is “linked to the deep difficulties experienced in the European [EV] market by all producers”.

According to figures from Jato Dynamics, Fiat sold 74,885 examples of the 500 (in both petrol and electric forms) across Europe between January and the end of July, 24% fewer than it had over the same period last year.

Meanwhile, EVs’ market share in Europe fell to 13.5%, down from 14.6% in July 2023.

“The lack of clarity around the incentives for and future of EVs continues to present a barrier to consumers considering an EV,” Jato analyst Felipe Munoz said. “These factors, alongside the low residual value of EVs, contributed to the decline seen in July.”

Slow sales of the 500e – as well as the impending end of sales of the old petrol 500, due to new cybersecurity regulations – have pushed Fiat to develop the new 500 Ibrida.

Effectively the 500e retrofitted with a mild-hybrid petrol engine, it will serve as an all-important crutch for the Italian brand as it navigates the slower-than-expected transition to selling solely electric cars.

Fiat CEO Olivier François recently told Autocar: “We obviously, like everyone else, thought that the world would go electric faster and the cost of electrification would go down faster.

“But we couldn't imagine that Covid would happen, shortage of raw materials would happen [and] the European Society – not all, not the youngest part – would turn their backs on the sustainable solutions.

"But this is the reality. We have to face those realities.”

As well as introducing the 500 Ibrida, Fiat is investing some €100 million (£84m) into developing a new battery for the 500e.

Stellantis chief Carlos Tavares said this will "significantly increase range of the 500e while significantly reducing the cost".

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#1

Wednesday, Oct 02, 2024 7:48 AM

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