EUROPE’S second-largest carmaker, has halted production of an iconic model as its EV lineup faces ‘deep trouble’.
An initial manufacturing break at Stellantis has now been extended as bosses report a collapse in demand for electric cars.
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The Fiat 500 was one of the vast company’s most successful and beloved models across two production runs lasting a collective 35 years.
Dating back to 1957, it has sold more than six million units between its two iterations.
However, the 500e, unveiled in 2020 as an electric alternative, has proved less popular.
The model is intended as the long-term successor to the 500 beyond the 2035 ban on petrol and diesel car sales.
But stuttering demand has now forced a pause in its production.
The latest data suggest that both the petrol and electric 500 sol 74,885 units from January to July.
That’s almost a quarter down on the same period last year.
Bosses told Autocar that poor sales were “linked to the deep difficulties experienced in the European EV market by all producers.”
They have also reportedly told union reps that the electric car segment is facing “deep trouble” more generally.
The shutdown was announced last month and was only set to last until October 13, but has now been extended.
The 500e is now scheduled to return to the production line on November 1, stretching the total delay out to four weeks.
Fiat CEO Olivier François said: “We obviously, like everyone else, thought that the world would go electric faster and the cost of electrification would go down faster.
“But we couldn’t imagine that Covid would happen, shortage of raw materials would happen [and] the European Society – not all, not the youngest part – would turn their backs on the sustainable solutions.
“But this is the reality. We have to face those realities.”
It comes after Stellantis boss Carlos Tavares, who looks set to leave the role in 2026, hit out at tightening Net Zero restrictions on the industry.
During a company earnings call, he took aim at the ZEV Mandate, which requires manufacturers to ensure that EVs make up an increasing percentage of their sales each year.
He said: “The ZEV Mandate is hurting significantly our business model and this is triggering a strategic review of our business model, including the manufacturing footprint.”
