Why the European Union's E-Car project could benefit Stellantis, and especially Fiat

The last few days have seen a flurry of announcements concerning the European automotive industry. Antonio Filosa, the new CEO of StellantisStellantis Europe's CEO, Jean-Philippe Imparato, spoke at the Munich Motor Show, and Ursula von der Leyen, President of the European Commission, unveiled a new legislative direction. Behind these statements, a common thread emerges: the European Union's E-Car project, designed to breathe new life into small, affordable cars, could well become a boon for Stellantis. And above all for Fiatthe most legitimate brand in this field.

Europe in automotive decline

Antonio Filosa drew a stark conclusion: Europe is the only major region in the world to see its automobile sales fall so rapidly. "We've gone from 19 to 15 million cars, with the loss of around 3 million vehicles", he recalls. The compact car segment, historically the most popular in Europe, has been particularly hard hit by this decline.

Ursula von der Leyen rings the revival

Aware of the need to adapt automotive supply to real demand from Europeans, Ursula von der Leyen unveiled a key initiative: "We need to invest in compact, affordable vehicles, both for the European market and to meet strong global demand. To this end, we will propose to work with industry on a new initiative entitled Affordable Small Cars. Less bureaucracy, fewer rules."

Clearly, Brussels is paving the way for more flexible regulations to boost production of small, cheap, electric cars. This is exactly what Fiat needs to prepare for the future.

Jean-Philippe Imparato puts figures on the table

Jean-Philippe Imparato went further, pointing to the near-disappearance of the A segment: "In 2019, there were 49 models under 15,000 euros. Today, only one remains. In his opinion, by returning to homologation conditions similar to 2018, and by limiting power and speed, it is possible to produce 3.50 to 3.70-meter cars sold for around 15,000 euros. Exactly the spirit of the European E-Car project.

Why the E-Car project is ideal for Fiat

The project describes two categories of small electric cars:

• M0: power limited to 54 hp, no freeway use, reduced safety.
• M1 ASEV: closer to today's cars, with comfort and authorization to use expressways, while remaining compact (3.80 m max., 1 tonne including battery).

It is precisely this second category that could accommodate the future Fiat 500 and Fiat Panda expected around 2030. These models should be based on a specific platform, not the STLA Small used by other Stellantis vehicles, proof of the strategic importance of the project for Turin.

Since the creation of Stellantis, the A segment has been the forgotten one. The electric Fiat 500 has attempted to fill this role, but with mixed success due to a price deemed too high and the gradual end of European subsidies. As for the Fiat Panda, it continues to attract massive interest in Italy, but its replacement is expected by 2030.

If the E-Car project comes to fruition, Fiat could resume its historic role as champion of small, popular cars. Better still, this momentum could inspire other Stellantis Group brands to return to the A segment, such as Citroën with the C1 or Peugeot with a 108.

The message is clear: the European Union, Stellantis and Fiat are finally converging on the same vision. On the one hand, Brussels wants compact, accessible, electric cars. On the other, Stellantis could take advantage of the E-Car project to boost sales of its future Fiat 500 and Fiat Panda.