Stellantis has announced that it is extending until November 1 the period of suspension of the production of the all-electric Fiat 500 model, against the background of reduced demand, reports Reuters.
Previously, the company had informed that it would suspend production until October 11.
Stellantis, which owns the Fiat, PSA, Chrysler, Jeep, Citroen and Alfa Romeo brands, is Italy’s only major carmaker. The 500e model is produced at the famous Mirafiori factory in Turin, the place of origin of Fiat, writes Agerpres.
Stellantis representatives told the unions that the electric car market in Europe is facing “major difficulties”.
The slowdown in electric vehicle (EV) sales globally has led automakers to adjust their EV plans.
Despite the temporary stoppage of production, Stellantis has assured that it maintains its plan to invest 100 million euros in the Fiat 500e model with a high-performance battery, while from 2026 the production of the new Fiat 500 Hybrid will begin.
Unions have long asked Stellantis to restart the Mirafiori plant, where production has fallen in recent years.
The authorities in Rome will offer subsidies of up to 13,750 euros for those with low incomes who want to buy a new electric vehicle, which costs up to 30,000 euros, excluding VAT. Part of this subsidy is linked to the scrapping of an existing combustion engine car.
The same group of low-income people can benefit from a subsidy of up to €10,000 for a new plug-in hybrid vehicle that costs up to €45,000.
Stellantis recently unveiled the new Citroen e-C3, a low-cost electric vehicle with a starting price of 23,300 euros ($24,540), intended to compete with affordable electric models from Chinese automakers. The Citroen e-C3, which will be produced in Slovakia, will compete with the Dacia Spring, which is assembled in China.
Electric and hybrid vehicles are more expensive than those powered by internal combustion engines, and European carmakers want to launch cheaper models to counter competition from China.
On Monday, Stellantis shares were down about 14% on the stock market after worsening annual forecasts. This year, the stock has fallen nearly 38%, making it Europe’s worst-performing carmaker.
Stellantis, Europe’s fifth-largest carmaker by market value and owner of the Chrysler, Jeep, Fiat, Citroen and Peugeot brands, cited worsening trends in the auto industry, higher costs to overhaul its US business and competition from China in the segment electric vehicles (EV).
Analysts at Citi expect the sector’s problems to persist for weeks and estimate that a Stellantis recovery does not appear possible until 2025.
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