Fiat is set to halt production of its electric 500e model starting September 13 due to weak demand, as reported by Reuters. Sales of electric vehicles (EVs) in Europe have declined significantly, with a 33% drop in August marking the slowest sales month since January 2023. This sluggish market, combined with low interest in the 500e, has prompted Fiat to pause production at its factory in Turin, Italy, for a duration of four weeks.
In a statement, Stellantis, Fiat’s parent company, cited the need for this measure as stemming from “the current lack of orders related to the severe challenges faced by all manufacturers in the European electric vehicle market, particularly those based in Europe.”
This pause in production comes just months after the Fiat 500e was launched in North America. While this subcompact electric vehicle has been available in Europe since 2020, it only arrived in U.S. dealerships this year. Fortunately for U.S. sales, the temporary halt is not expected to have a significant impact, as there is currently ample inventory available—Fiat’s website lists 904 new 500e vehicles across dealerships nationwide. Nevertheless, demand is tepid, with only 204 units sold in the U.S. this year.
The Fiat 500 has historically struggled to gain traction in the U.S. market, so the slow sales figures are not shocking. In Europe, sales figures reveal a 24% decline from January to July compared to the previous year, according to Jato Dynamics, a UK-based data analytics firm. Analyst Felipe Munoz noted that uncertainty surrounding incentives and the future of EVs is a significant barrier for consumers considering an electric vehicle. He also pointed out that the low residual values of EVs have further contributed to this downward trend.
This is not the first time production of the 500e has been paused; it has experienced temporary shutdowns on two occasions earlier this year and once in 2023. It’s disappointing to see the 500e’s poor sales performance, especially given its unique design and features, including a range of 141 miles and a starting price of $34,095. Despite these statistics, the 500e is a fun and distinctive choice in an otherwise homogenous market dominated by crossovers, leading many to hope for its success..
