Stellantis, the Franco-Italian automotive group that owns brands like Fiat, Citroën, Vauxhall, and Peugeot, is suspending production of the fully electric Fiat 500 at its Mirafiori plant in Turin, Italy, for four weeks starting this Friday. The decision was prompted by a sharp drop in European orders for the model, underscoring a broader slump in electric vehicle (EV) sales across the continent.
"The measure is necessary due to the current lack of orders linked to the profound difficulties experienced in the European electric [car] market by all producers, particularly the European ones," Stellantis said in a statement. The company acknowledged the challenges facing EV manufacturers, as shifting government incentives and market conditions have affected consumer demand.
The iconic Fiat 500, produced at the historic Mirafiori factory, has been a hallmark of Fiat’s electric offerings. Stellantis has invested €100 million into the site to upgrade its battery capabilities and plans to launch a hybrid version of the 500 between 2025 and 2026. The company emphasized its commitment to transforming Mirafiori into a center for innovation in sustainable mobility.
In the face of falling output, unions have urged Stellantis to use the site for a new, affordable, high-volume car model to revive production.
Italy’s government has introduced a $1 billion plan to encourage consumers to switch to cleaner vehicles, offering subsidies for fully electric cars. However, disagreements between Stellantis and Rome over the structure and effectiveness of these incentives have persisted, further complicating the market.
Concerns are also mounting over a potential trade conflict between the EU and China. Following the European Commission’s decision to impose tariffs ranging from 17.4% to 37.6% on Chinese EV imports, tensions have escalated. Spanish Prime Minister Pedro Sánchez recently called for the EU to reconsider these tariffs, warning that Europe should avoid a trade war with China.
China, a global leader in EV production, saw its electric car sales soar from 1.3 million in 2021 to 6.8 million in 2022, accounting for over a third of global EV sales. Meanwhile, Europe’s electric vehicle market faces mounting challenges as it navigates policy shifts, competition, and consumer hesitancy.
