Stellantis is facing a challenging period, with sales for its Dodge and Jeep brands in the U.S. plummeting, and its overseas brands not faring much better. In a further blow, Stellantis has announced an extension of the production suspension for its all-electric Fiat 500 until November 1 due to low demand. The company initially halted production on September 12, intending to idle the Mirafiori, Italy plant for four weeks. This stoppage has now been extended by an additional three weeks.
According to Reuters, this decision comes alongside a statement to trade unions indicating that the electric car market in Europe is "in deep trouble." Despite the production halt, the Fiat 500 is not entirely out of the picture. Stellantis plans to invest over $110 million into the car over the next two years, focusing on the development of a gas-powered hybrid version set to launch next year. This move aims to address the declining demand for purely electric models.
To provide some perspective, Stellantis sold only 470 Fiat 500s in the U.S. during the first half of 2024. In contrast, the company sold 46,999 units of the last-gen 500 in its best year, 2012. Even in 2020, after the car had been discontinued for North America, Stellantis managed to sell 674 units. The lack of demand in the U.S. is understandable given the 500e's limited range of 149 miles and a starting price of $34,095. For the same price, American car buyers can opt for an electric Hyundai Kona, which offers more space and an additional 120 miles of range, making the Fiat 500e less competitive.
Introducing a gas-powered trim is a positive step, but it may be too late for Stellantis, considering the recent negative news surrounding the brand. Hopefully, the company can find a way to navigate out of the difficult situation it currently faces.
