Italian automaker Fiat is gearing up for a brand overhaul in the United States as it prepares to reintroduce its popular electric car, the Fiat 500e. The move is seen as an attempt to challenge Tesla’s dominance in the rapidly growing electric vehicle (EV) market.
Fiat has experienced a significant decline in sales over the past few years, prompting analysts to believe that a new, affordable, and distinctive EV like the revamped 500e could help reshape the brand’s image.
Having been a part of the North American market since the early 1900s, Fiat has had a tumultuous history with several departures due to factors such as World War I and declining sales. However, in 2011, Fiat made a comeback after acquiring a 35% stake in the struggling “big three” American automaker Chrysler in 2009.
In January 2021, after extensive negotiations, Fiat-Chrysler merged with the PSA Group (Peugeot SA) to form Stellantis.
Despite ongoing sales decline, with only 138 vehicles sold in Q1, Fiat believes that its newly appointed North American leader can revive the brand. Aamir Ahmed, formerly associated with Fiat-Chrysler and Amazon, has been entrusted by Stellantis to deliver “cool mobility solutions for all.”
According to Oliver Francois, CEO of Fiat Global, the brand plans to reintroduce its best-selling EV, the Fiat 500e, to the US market next year in an effort to regain its footing.
Many might recall Fiat’s initial launch of the 500e model in the US, which was primarily a compliance car with limited sales in California and Oregon, boasting an 84-mile range. The focus at that time was on affordability, with lease prices well below $100 per month.
For its upcoming release, Fiat intends to expand the range and features of the 500e. Ivan Dury, director of insights for Edmunds, expressed that a small electric vehicle with improved range could attract significant attention. He noted that the current average transaction price (ATP) for an EV stands at $60,000, and there is a market segment seeking more affordable options without resorting to purchasing used vehicles.
The discontinuation of General Motors’ Chevy Bolt, one of the most affordable EVs in the US, presents an opportunity for a brand like Fiat to capture some market share. General Motors plans to replace the Bolt with its Ultium-based models, including the forthcoming Silverado EV, Equinox EV, and Blazer EV.
Dury also suggested that Fiat could compete with Tesla, the leader in the EV market, by targeting the lower end of the market. While Tesla has teased a $25,000 model, Fiat could distinguish itself by offering more amenities and distinctive styling in a small hatchback. Dury highlighted the scarcity of similar products in the pipeline.
Francois emphasized that Fiat would adhere to its core strengths with the new 500e, delivering a “polarizing, niche, unique” statement, which he believes resonates with American consumers.
The European version of the 500e has achieved significant success in Europe, ranking among the top-selling EVs on the continent and holding the title of best-selling car overall in Germany.
