«Revolutionary and affordable»: Stellantis announces a mysterious «E-Car»... and its real name could be a well-known Fiat

The timing is no coincidence. Just two days before the presentation of the new Stellantis by Antonio Filosa, the group has just announced a particularly symbolic project for Italy: the launch of the E-Car, a «revolutionary and affordable» small electric car to be produced from 2028 at Pomigliano d'Arco, near Naples. A major announcement for the Italian automotive industry... but also, in our opinion, a very serious clue to Fiat's future.

Behind the generic name «E-Car», there are several indications that Stellantis is in fact preparing a model we've been hearing about for several weeks: the mysterious Fiat Koala.

What is an «E-Car»?

Behind this still very generic name actually lies a new type of small electric car that the European Commission wishes to encourage. Inspired by the Japanese kei car system, this segment, dubbed «M1E», is designed for compact electric vehicles under 4.20 meters in length, produced in Europe and designed primarily for everyday urban use.

The aim is clear: to enable the return of truly affordable electric cars, at a time when the European market has gradually abandoned small city cars priced at under €15,000. In exchange, manufacturers could benefit from «super-credits» for their CO2 targets, to encourage the development of this new category. Brussels could freeze technical regulations for ten years or so, to give manufacturers visibility and limit development costs.

A popular little electric made in Pomigliano

In its official press release, Stellantis insists heavily on several points: the E-Car will be compact, accessible, 100 % electric and intended for the European market. The group even explicitly refers to the European tradition of «mobility for all», a vocabulary immediately reminiscent of Fiat's historical DNA.

The choice of Pomigliano is not insignificant either. Today, the Italian plant produces the Alfa Romeo Tonale and above all the Fiat Panda, a veritable industrial monument in Italy. In its press release, Stellantis points out that the site is historically linked to «some of Europe's most iconic and affordable cars, including the hugely popular Fiat Panda». In other words, when Stellantis talks about a popular little electric car made in Pomigliano, it's hard not to think of Fiat.

The Fiat Koala returns to the center of speculation

For several weeks now, there have been insistent rumours of the arrival of a new electric Fiat called Koala. The model is still a mystery, but is presented as a simple, accessible city car closely linked to the Panda universe. In a previous article, We already explained that this Koala could represent a new stage in Fiat's strategy: to return to the heart of the European mass market with affordable vehicles, produced at controlled costs and adapted to the city.

The profile fits this famous E-Car perfectly. All the more so as Stellantis now specifies that several of the Group's brands will offer E-Car models. Antonio Filosa even speaks of a project «deeply rooted in Stellantis» European DNA", designed to meet a clear customer demand for small, elegant, ecological and affordable cars. Here again, it's hard not to see Fiat as the program's pilot brand.

Is the Panda doomed?

That's obviously the big question behind this announcement. If a new electric Fiat arrives in Pomigliano in 2028, what will become of the current Panda? Today, the little city car continues to dominate the Italian market, thanks to its low price and simplicity. Fiat still needs it to maintain its volumes in Europe. But the arrival of an E-Car could gradually change all that.

Two scenarios seem possible. Either this future Fiat Koala will directly replace the current combustion-powered Panda, becoming the automaker's new electric entry-level model. Or it will cohabit with a Panda that has also been renewed, but with a different positioning. In the end, it all depends on the specifications of the two models.

If the future Koala takes up the ultra-practical, minimalist and popular spirit of the Panda, then it could naturally become its heir. But if Fiat opts for a more technological, design-led or premium approach, the Panda could continue to exist in parallel as an ultra-affordable thermal solution.

For the time being, Stellantis remains deliberately vague. The group is only talking about a «compact, innovative and affordable» vehicle, developed with external partners in order to reduce costs and accelerate development.

A strategic project for Stellantis... and for Italy

Beyond the simple model, this announcement above all reveals an important strategic shift for Stellantis. The Group implicitly acknowledges that it has left a gap in the European market for affordable small cars. Between soaring production costs and the constraints of electrification, many popular city cars have disappeared in recent years. With the E-Car, Stellantis is clearly aiming to return to this terrain.

The press release even mentions «significant production volumes», proof that the group is thinking big. Stellantis could also rely on new industrial partnerships, including with Chinese manufacturers, to reduce development costs and accelerate time-to-market. It's hard not to think of Leapmotor, which already has experience of the T03.

Fiat appears to be the ideal candidate for this project. As Olivier François recently affirmed, the brand wants to become «a major player in the automotive industry".« the driving force behind Stellantis' turnaround in Europe ». And the more the weeks go by, the more this famous Koala looks like the missing piece of the puzzle.