Stellantis is once again stopping production of the electric Fiat 500 at Mirafiori, near Turin. The reason: insufficient demand for electric city cars in Europe.
Fiat 500 electric: a broken market
Electric cars are struggling to appeal. Sales of electric city cars in Europe fell by 54% in the first ten months of 2024. In Italy, these vehicles only represent 4% of total registrations. For Stellantis, this “is not sufficient to maintain continuity of production“. The electric Fiat 500, although an emblematic figure of electrified city cars, is suffering the full brunt of this disaffection. Result: from December 2 to 17, 2024, the Mirafiori assembly lines will stop again.
The problem is not limited to Europe. In other key markets such as the United States or China, sales of electric vehicles, particularly luxury vehicles, are also stagnating. C
The Mirafiori factory, which produces 97% of electric vehicles, symbolizes the hopes and limits of this transition. With its 13,000 employees, this industrial complex is a pillar of the local economic fabric. However, only the body shops, bringing together 1,800 employees, are directly affected by the suspension of production.
Stellantis tries to reassure. In an official statement, the group reiterated its commitment to “guarantee the continuity of all its factories and activities» in Italy. But the repeated periods of technical unemployment experienced by Mirafiori employees in 2024 illustrate a deep unease, accentuated by criticism of Meloni’s Italian government.
Energy transition: what levers to boost demand?
The government of Giorgia Meloni was quick to react. He accuses Stellantis of favoring production sites in low-cost countries, to the detriment of Italian factories. Stellantis, for its part, cites the “persistent uncertainty” hovering over the markets to justify its choices. But subsidies, like the ecological bonus, are struggling to reverse the trend in Italy, where the adoption of electric vehicles remains marginal.
To overcome these difficulties, the automotive industry must adapt. Improving charging infrastructure, reducing the costs of electric vehicles and raising consumer awareness are all levers to be used. In the short term, the temporary closure of the electric Fiat 500 lines at Mirafiori highlights the immediate challenges: Stellantis must adjust its production to uncertain demand, while anticipating future developments.
