Stellantis, the parent company of Fiat, is facing some tough times as the demand for the Fiat 500 remains low. The production pause for the Fiat 500, which was initially supposed to resume on October 11 after being halted due to poor sales in September, has now been extended until November 1. This decision comes as part of a broader trend of declining sales for Stellantis, with both its Dodge and Jeep brands in America experiencing significant drops in sales.
In addition to the struggles in the American market, Stellantis is also facing challenges with its overseas brands. The company is particularly concerned about the electric car market in Europe, which it describes as being “in deep trouble.” Despite these setbacks, Stellantis is not giving up on the Fiat 500 just yet. The company plans to invest over $110 million in the next two years to develop a gas-powered hybrid version of the Fiat 500, which is expected to hit the market next year. This decision marks a shift away from a purely electric lineup in response to the declining demand for electric vehicles.
To put things into perspective, Stellantis only sold 470 Fiat 500s in America in the first half of 2024. This pales in comparison to the 46,999 units sold in 2012, which was the best year for the previous generation of the Fiat 500. Even after the Fiat 500 was discontinued in North America in 2020, Stellantis still managed to sell 674 units. The lack of demand for the Fiat 500 in the US can be attributed to its limited range of 149 miles and starting price of $34,095, which makes it less appealing compared to other electric vehicles on the market that offer more range at a similar price point.
While the decision to introduce a gas-powered trim for the Fiat 500 is a step in the right direction, it remains to be seen whether it will be enough to turn things around for Stellantis. The company is facing an uphill battle as it tries to navigate through the challenges in the automotive market. Hopefully, with the upcoming changes and investments in the Fiat 500, Stellantis will be able to overcome these obstacles and regain its footing in the industry.
