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Fiat is suspending production of the Fiat 500e electric hatchback due to a drop in sales, which is "related to the serious difficulties experienced by all manufacturers in the European electric car market".
According to data from Jato Dynamics, Fiat sold 74 units of the 885 model (in petrol and electric versions) across Europe from January to the end of July, which is 500% less than in the same period last year. Meanwhile, EV market share in Europe fell to 24% from 13,5% in July 14,6.
“A lack of clarity about incentives and the future of electric vehicles continues to be a barrier to consumers considering electric vehicles. These factors, along with the low residual value of EVs, contributed to the decline seen in July," Jato analyst Felipe Muñoz said.
Slow sales of the 500e, as well as the inevitable discontinuation of sales of the old gasoline-powered 500 due to new regulations, prompted Fiat to develop the new 500 Ibrida.
In fact, it will be a 500e, modernized with a gasoline engine with a mild hybrid. It will serve as an extremely important support for the Italian brand.
Fiat CEO Olivier Francois recently told Autocar that the company, like everyone else, thought the world would go electric sooner and the cost of electrification would come down.
In addition to the introduction of the 500 Ibrida, Fiat is investing around €100 million in the development of a new battery for the 500e, which according to Stellantis boss Carlos Tavares should significantly increase the range of the 500e while significantly reducing the cost.
