ROME, Sept 12 (Askume) – Stellantis (STLAM.MI) said on Thursday it would halt production of its all-electric Fiat 500 small car for four weeks due to low demand.
Global electric vehicle (EV) sales are slowing, in part due to varying green incentives, forcing automakers around the world to adjust their EV plans.
“This step is necessary because all manufacturers, especially the European ones, are experiencing serious difficulties in the European electric (car) market and are currently facing a shortage of orders,” Strantis said in a statement.
The 500 is produced at the historic Mirafiori factory in the northwestern Italian city of Turin, birthplace of the Fiat brand.
Stellantis said the shutdown will begin on Friday and that the company is “working to best manage this difficult transition period.”
As part of these efforts, the Franco-Italian group said it would invest 100 million euros ($110 million) in Mirafiori to introduce high-performance battery and hybrid models in 500 electric models between 2025 and 2026. Prepare this version.
Unions have long called on Stellantis to restart the Mirafiori plant, where production has declined in recent years, including by launching a new high-volume, affordable car.
Stellantis said: “The Mirafiori campus is undergoing an intensive transformation with the goal of making it a truly global base for innovation and growth, a vital choice if we are to meet the challenges of the transition to sustainable mobility.”
Italy launched a $1 billion program earlier this year to help drivers switch to cleaner cars and provide subsidies for the purchase of pure electric vehicles , but the government and carmakers are at odds over the incentives.
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