The electric city car is suffering a brutal slowdown in its sales. Since the start of the school year, the factory's days of activity can be counted on the fingers of one hand, as technical unemployment has dominated.
Since September, production days for the Fiat 500e have become rare. Sales fell so much that factory workers were put out of work for many weeks. The future does not look much brighter, according to an AFP report from November 29.
Thus, Fiat has once again suspended production of the small electric city car from December 2 to 17, 2024. This period will be followed by the closure of the factory for the end-of-year holidays. At best, production of the Fiat 500e will resume on January 6, 2025, because it cannot be ruled out that this break will be extended again.
A conflict with Italy which will not be appeased for the holidays
This is unlikely to ease the already tense relations between Stellantis and the Italian government. The executive accuses the manufacturer, which controls the brand, of neglecting national production in its strategy. Italy has always been proud of its automobile production, but fewer and fewer examples are assembled there. This drop is accompanied by layoffs, strongly encouraged departure plans or technical unemployment for employees based in Italy.
Prime Minister Giorgia Meloni and other ministers have expressed their opposition to Stellantis' strategy throughout the year. They did not hesitate to put obstacles in the way of Stellantis (with the Topolino or the Alfa Romeo Junior) and use emotional and financial blackmail to make things happen. Carlos Tavares, boss of the manufacturer, assures that Italy is not neglected and that new models will restart production. But his speech does not convince Rome.
With new production suspensions, which also extend to Maserati's electric models (GranTurismo and GranCabrio) also assembled at Mirafiori, the year 2025 risks starting with a new political conflict.
A situation which becomes incomprehensible for the Fiat 500
Stellantis justifies this judgment by “ prospects that do not ensure business continuity “. The electric car market in Europe is quite chaotic and especially uncertain for 2025. When key markets like Germany or France slow down, the impact on European manufacturers is inevitable.
The fact remains that Stellantis' attempts to relaunch the model are a failure. Despite attractive discounts and leasing offers, the brand is struggling to attract customers. The Fiat 500e has not evolved technically since its launch, and this is starting to have an impact on purchasing intentions.
Instead of reducing the price, the brand has focused on a more generous provision of equipment or launching exclusive models that are even more high-end. That's good, but that doesn't make this Fiat 500e more affordable, a crucial element in the current context.
This situation is frustrating, and if we have to wait for a possible mid-career update to see any change, this model will quickly be overtaken by the competition. Even if the Fiat remains the most compact city car on the market, there are now competing alternatives.
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