Stellantis Extends Fiat 500e Production Halt Due to Weak EV Demand – Report

Stellantis’ CEO, Carlos Tavares, is set to address an Italian parliamentary committee next week concerning the company’s production activities in Italy amidst concerns about weak demand for electric vehicles, according to reports.

The hearing is scheduled for October 11, following the news that the company has extended the suspension of production for its Fiat 500 electric city car until November 1 due to low orders. The Fiat 500e is produced at the historic Mirafiori plant in Turin, northern Italy. The initial pause in production was meant to last until October 11, but has now been extended.

During the hearing, Tavares is expected to provide a comprehensive overview of the company’s production in Italy, recognizing the urgent need to address the complex challenges facing the global and European automotive sectors.

A slowdown in global electric vehicle sales, attributed in part to inconsistent policies regarding green incentives, has led many automakers to reevaluate their electric vehicle strategies. In a prior communication, Stellantis indicated to trade unions that the electric car market in Europe is facing significant difficulties.

Despite the production halt, Stellantis has reiterated its commitment to invest €100 million in the Fiat 500e, which will include a high-performance battery. The company also plans to begin production of the new 500 Hybrid in early 2026.

Earlier this year, Italy launched a $1 billion initiative aimed at fostering the transition to cleaner vehicles by offering subsidies for fully electric car purchases.