Stellantis continues to endure woes as the company confirms it has stopped production of the Fiat 500 due to low consumer demand with production not set to resume until November.
Fiat confirms that it’s extending an existing production stoppage of the Fiat 500 as it struggles with sluggish demand for the model.
The hits just keep on coming for Stellantis. The auto conglomerate is dealing with cratering sales in the U.S. and overseas and all of this is being amplified by issues with both the UAW and its dealer network. As the situation around it continues to crumble, the company is being forced to do new discount plans and other solutions to try and solve the issues before they reach a breaking point.
Other tactics that the company appears to be doing now include targeted production stops of selected models with Stellantis and Fiat confirming that they have temporarily stopped production of the slow-selling Fiat 500 as Stellantis attempts to cut costs and reduce lingering production inefficiencies to help itself stay afloat.
Fiat 500 has been struggling
The decision to stop production comes as parent company Stellantis is struggling with multiple problems.
The confirmation is the latest sign that Fiat’s attempt to enter the electric car market with the tiny 500 has not been going to plan at all. Customer demand for the model has been lukewarm at best and this sluggish demand prompted Fiat to idle the Mirafiori assembly plant where the car is built for four weeks starting on September 12th. However, plans have changed and the brand will now idle the plant for the entire month of October with production not slated to begin until November 1st. That kills a prior production resumption date of October 11th and it casts an ominous spotlight on the 500e.
The 500e is the all-electric version of the 500 and it was supposed to give Fiat a contender in the urban EV market with the stylish EV targeting buyers in sprawling urban centers who needed a small EV to navigate bustling city streets. Fiat admitted that the model is tailored towards the European market but it’s clear that customers in Europe are not following the script with low sales being reported there. That also mirrors the 500e’s sales performance in the U.S. with Stellantis confirming it only sold 470 500es so far in 2024. That number is a far cry from the last generation 500 which managed to sell 46,999 units in 2012 during a time when high gas prices forced many buyers to ditch SUVs for small fuel efficient cars.
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Fiat is changing its strategy
Fiat is already moving to boost demand by ditching its EV-only strategy for the model and adding combustion -powered versions to the 500 lineup.
While the production stoppage is the latest slice of bad news for Stellantis, it’s also important to note that the company is not killing the 500 outright. Fiat recently confirmed that it’s abandoning its EV-only sales strategy for the model and will sell combustion-powered models alongside the EV in an attempt to expand its appeal and draw in buyers who would rather go for a familiar powertrain versus an all-electric setup that requires them to find charging stations and install home charging technology in their house.
The combustion versions of the 500 will also help lower the price of entry for consumers with the 500e currently having a high base price of $34,095 and a paltry 149 miles of range between charges. The new models are rumored to be powered by hybrid powertrains which would allow these 500s to form a bridge for consumers who can buy a gasoline-powered model first before later moving up to the 500e when they are ready to do so.
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