The Fiat 500e, emblematic model of the Italian manufacturer's electric transition, is going through a difficult period, far from the ambitious targets set at its launch. Initially scheduled for production of 100,000 units a year, the little electric city car is only expected to reach than an all-time low in 2024. According to forecasts by the Italian trade union FIOM-CGIL, only 20,000 units are expected to roll off the production lines at Stellantis' Mirafiori plant in Turin.
A rollercoaster ride
Launched with great fanfare in 2020, the Fiat 500e met with relatively modest success, selling 10,000 units in its first year. However, figures quickly climbed: 44,000 vehicles sold in 2021, then peaking at 66,000 in 2022. By 2023, sales had dropped slightly to 65,000 units, but were still solid.
While everything seemed to be going in the right direction, sales ran out of steam, and 2024 looks set to be a black year for the 500e. The model's launch in the USA also seems to be a commercial failure. The FIOM-CGIL union sounded the alarm, pointing out that production at the historic Mirafiori plant fell by 83 % in the first eight months of the year, compared with the same period in 2023. Only 18,500 cars have been produced to date, compared with 52,000 last year. If this trend continues, annual production is likely to plateau at 20,000 units.
The consequences of a drastic drop in production
The drop in production had a considerable impact on the plant's employees. In response to the low volumes expected, a new wave of short-time working is imminentThis has affected not only direct workers, but also the entire local supply chain. Edi Lazzi, FIOM-CGIL secretary for Torino, describes the situation as "devastated", with a growing sense of malaise among employees. The plant currently has 3,000 employees on a solidarity contract, which is due to last until the end of the year. The Mirafiori plant will have undergone almost a year of unemployment.
Gianni Mannori, an IMF official for Mirafiori, revealed that Maserati production, also made at Mirafioriproduction will be halted next week, running only on Mondays, before resuming on September 16. Production of the Fiat 500e, meanwhile, will continue only until Thursday, reflecting the critical situation.
An uncertain future for Mirafiori
Low demand for the current 500th, combined with the expectation of the launch of new versions of the Fiat 500 (electric and hybrid)could plunge the plant into a similar situation by 2025. Only a revival of production, supported by these new, more competitive models in terms of price and range, seems to be a solution to bring the plant out of its torpor.
The year 2026 is therefore eagerly awaited by Mirafiori employees, as well as by customers of the Fiat brand. The launch of the new electric Fiat 500 and the hybrid version could finally revitalize production and enable the Turin plant to return to a more sustained rhythm.
The Fiat 500e and its declining sales prove that electric car sales are getting tough.
We're getting down to the nitty-gritty, and it's getting harder and harder to convince buyers to go electric.
Added to this is the high price of the 500e compared to the previous Fiat 500 hybrid.
EVERYONE knows that the problem is its price, but Scrooge will persevere in the stupidity of his avarice to the point of killing such an icon...
Change is URGENT.
Tavares can't do anything about the price. You can't just lower the price of a product (in this case, the 500e) on a whim. FIAT has to get its margins back. If the price is abnormally high, it's because development and design must have cost an arm and a leg. And since it doesn't sell, it's very difficult to make the product profitable... The problem goes back to the FCA era. At the time, they should have produced different clones of the 500e for other brands in the group, to make the investment even more profitable. Instead, we have a single-model platform. No other group in the world designs a platform and engine for a single model. At some point, things were bound to get stuck. Especially since the electric challenge was risky to begin with.
Tavares can be blamed for a lot of things, I'm the first to criticize him on many points, but you also have to recognize that FCA screwed up in a lot of areas before the merger. 🙂
As far as I'm concerned, they're going to try to prolong the car's career as long as possible, so as to lose as little as possible while waiting for its replacement, which will be powered by an internal combustion engine (well...). The STLA City, according to the latest rumors? This time, if they don't make the same mistake again, we might be able to look forward to cousins from other Stellantis brands? A C1? 108? Adam? That would be nice, because there's a shortage of micro-cycles these days...
It has to come from Europe and they have to understand that combustion and electric cars can coexist very well, but our leaders are too full of themselves.
When you see the outrageous tf1 "report" comparing diesel/petrol/electric, you can't wonder why people don't buy electric: there's a widespread campaign financed by the anti-EV lobbies.
Under these conditions, it is even more difficult for the sector to achieve a healthy economic situation.