Stellantis announced on Monday that it would manufacture a hybrid version of its 500e small electric car at the Mirafiori plant in Turin, Italy, in response to a slowdown in electric car sales. The decision follows a meeting between Stellantis CEO Carlos Tavares and union representatives in Turin, who had been advocating for increased production at Fiat’s historic home with a new, high-volume, and more affordable model.
The Mirafiori plant currently produces the 500e model, but due to a global decline in sales of fully electric vehicles, Stellantis has had to significantly reduce production rates, leading to extended furlough periods for plant workers.
See also: Stellantis to Revamp Fiat 500 Electric with More Affordable Version
In a statement, Stellantis emphasized the importance of offering affordable and high-quality cars for Italian customers. The company highlighted that the development of affordable cars is dependent on various external factors, including lower energy costs, the expansion of charging networks for electric vehicles, and long-term subsidies for auto purchases.
This move could improve Stellantis’ relationship with the Italian government, which has criticized the group for its declining output in the country and for manufacturing some Fiat and Alfa Romeo models abroad. Stellantis and the Italian government are in discussions over a plan to increase the group’s production in Italy to 1 million vehicles by the end of the decade, up from around 750,000 last year.
See also: Fiat Plans Mild Hybrid Conversion for 500e Amidst EV Market Slowdown
According to Ferdinando Uliano, leader of the FIM-Cisl union, production of the hybrid 500e is set to begin in the first quarter of 2026, but specific output figures have not been provided. Automotive News Europe reported that Stellantis aims for total annual output of 200,000 500s, including 125,000 hybrids, compared to fewer than 80,000 units produced last year.
Stellantis also announced plans to produce a hybrid version of the Jeep Compass SUV at the Melfi plant in southern Italy. Additionally, production of the hybrid Fiat Panda city car, manufactured in Pomigliano near Naples, could be extended. Uliano stated that the current Panda model, introduced in 2011, could continue to be produced until 2029, depending on developments in European Union regulations.
