Production of the FIAT 500e is halted due to lack of demand

Due to lack of demand, the automotive giant Stellantis has decided to halt production of the FIAT 500e electric car for a period of four weeks, according to sources within the company. This measure comes on top of the reduction in working hours that had already been implemented in the first half of this year at the Mirafiori plant, located near the Italian city of Turin, also as a consequence of weak demand.

Although Stellantis aims to sell exclusively electric vehicles in Europe from 2030, and more than five years still remain until then, reaching that goal does not seem likely to be easy. Following the withdrawal of purchase subsidies for electric vehicles in several European countries, manufacturers have faced growing difficulties in selling this type of vehicle over the last few quarters. Stellantis is no exception and, like many other manufacturers, is feeling the effects of this situation.

According to a company spokesperson, this measure is absolutely necessary due to the current lack of orders, linked to the deep difficulties that all producers, especially European ones, are experiencing in the European electric vehicle market. This production pause began this very Friday, 13 September and is expected to extend until 14 October. The company says it is working intensively to manage this difficult transition phase in the best possible way.

A path full of obstacles

This is not the first time production of the FIAT 500e has been halted, however, not only because of lack of demand but also because of a shortage of essential components such as the cells for battery packs. Between February and April 2024, working hours at the Italian plant were already cut. This is yet another example of the ongoing challenge the automotive industry must face in its transition to electric mobility.

Finally, we cannot conclude without pointing out that Stellantis is investing 100 million euros in the Mirafiori plant, with the aim of equipping the FIAT 500e with a higher-capacity battery pack, and also of developing a hybrid version of this same model, which is expected to reach the market between 2025 and 2026.