Alexandre
While attractive, the electric Fiat 500 is increasingly losing out to consumers, mainly because of its price. Fiat is hitting back with a new wave of promotions for its 500e, in France, Italy and Germany. The iconic electric city car has seen its price drastically reduced in these countries, but conditions vary and the question is: how long will Fiat be able to maintain these attractive prices?
An attractive offer in France
In France, as in November, Fiat puts on the table a total discount of 8 000 € for buyers of the 500th. This offer combines 4,000 ecological bonus (thanks to the State) and 4,000 additional discount granted by Fiat. For a base model, such as the 500e RED 95 hp, this takes it from 30 400 € à 22 400 €. A similar offer also applies to the cabriolet version, the Fiat 500e cabriolet 118 hp La Prima, which sees its price reduced by 40 300 € à 32 300 €.
This sounds like the perfect opportunity for French drivers who want to go electric at an affordable price. But be warned, this offer is valid until December 31, 2024 only. A real opportunity, then, but the question is whether this promotion will return next year. In 2025, the environmental bonus could be revised downwards, making this offer all the more attractive.
In Italy: The Fiat Tricolore bonus, a generous but conditional discount
On the Italian side, Fiat has launched a an even more generous offer thanks to its Bonus Fiat Tricolorewhich offers 8,211 discount on the price of the Fiat 500e, initially at 29 950 €. However, this offer is subject to the trade-in of an old vehicle, which could limit its accessibility to certain buyers. Despite this condition, the discount remains significant, especially when compared with those offered in Germany or France.
In practical terms, this means a 500e with a list price of €29,950. at a promotional price of €21,739. Fiat seems genuinely keen to support its domestic market, and with production at the Melfi plant declining, this initiative appears to be a way of maintaining demand for the 500e while sustaining production volumes.
In Germany: lower but still attractive discounts
In Germany, the promotion is a little more modest, but interesting nonetheless. Fiat is offering the Fiat 500e from €24,990with a discount of 4 500 €. Although this discount is smaller than in Italy, it still makes the 500e more accessible at an attractive price, especially for those looking for a less expensive vehicle while benefiting from an electric 100%.
Why the differences between countries?
What's interesting is that the differences in discounts between countries underline Fiat's determination to support production at the Mirafiori plantwhich produces the 500th. The Italian brand is facing a complicated European market, and these promotions are a way of stimulating demand, especially as it is likely to still sell less than 500e in 2025.
A one-off or long-term discount?
The big question is this: If Fiat is able to lower its prices by €4,000 to €8,000 through promotions, why not integrate this reduction directly into catalog prices? While this policy of one-off promotions certainly gives a boost to electric car sales, it remains temporary. If this discount becomes the norm, it could change consumers' perception, who might wonder why they can't benefit from these reduced prices on a permanent basis.
This will probably clear stock and boost sales volumes for 2024, but it remains to be seen how long this will last.
With these substantial discounts on the 500e, is Fiat still making money, or is it selling at a loss?
The previous Fiat 500e sold in the USA was sold at a loss, so much so that Sergio Marchionne asked potential customers not to buy it.
Big discounts are a tradition at Fiat.
It's also a sign of brands in great commercial difficulty.