Carlos Tavares, the CEO of Stellantis, is scheduled to speak before an Italian parliamentary committee on October 11, focusing on the future of the carmaker’s production operations in Italy. This announcement comes after Stellantis expressed concerns over weak demand for electric vehicles (EVs) and extended the suspension of production for its Fiat 500 electric city car until November 1.
The Fiat 500 is manufactured at Stellantis’ historic Mirafiori plant in Turin, northern Italy. Initially, production was halted until October 11, but the company indicated that the ongoing lack of orders necessitated a further delay.
In its statement, Stellantis emphasized the importance of Tavares’ testimony, stating he would provide a comprehensive overview of the group’s automotive production in Italy. The company acknowledged the “complex international and European situation” within the automotive sector, which demands swift and effective responses.
A global decline in electric vehicle sales, attributed in part to inconsistent policies regarding green incentives, has compelled automakers to reevaluate their EV strategies. Stellantis previously informed trade unions that the electric car market in Europe is currently facing significant challenges.
Despite the temporary production halt, Stellantis reaffirmed its commitment to invest 100 million euros ($110.93 million) in the Fiat 500e, which will feature a high-performance battery. Additionally, the company plans to commence production of the new 500 Hybrid in early 2026.
Earlier this year, the Italian government launched a $1 billion initiative aimed at incentivizing drivers to transition to cleaner vehicles, including subsidies for fully electric car purchases.
