The sales figures for the all-electric Fiat 500e have been underwhelming, both in Europe and in North America. Fiat has sold only 439 units of the 500e in the United States and 381 in Canada since its launch earlier this year. But Stellantis isn’t backing down; the company promises to invest an additional $110 million in the development of the 500 in the coming years.
Why the bad numbers?
The reasons buyers are staying away are simple, and no mystery. Insufficient range and high price of the 500e are largely responsible.
Nearly 15 years ago, Fiat made a smashing return to the United States with the 500, an affordable and popular model. In just a few years, the automaker had sold nearly 100,000 units. The 500's retro Italian charm, combined with a wide range of colors and an attractive price, helped find it an audience.
However, the 500e has so far struggled to ignite the same excitement. There is hope that sales could increase slightly as interest rates fall in the coming months.
Temporary halt to production
Even Stellantis doesn't seem optimistic about an improvement in 500e sales in the near future. Production of the model was halted in early September at the historic Mirafiori plant in Turin, with a reopening scheduled four weeks later. But that stoppage has since been extended until November 1st.
A new strategy for the Fiat 500
The $110 million investment in the development of the Fiat 500 will focus on two areas. On the one hand, Fiat will work on a high-performance battery, hoping to improve the current 149-km (93-mile), which is simply inadequate.
Meanwhile, the brand will introduce a hybrid version of the 500 as early as next year. That could appeal to buyers put off by the low range of the 500e. Recent data shows that hybrids and plug-in hybrid vehicles (PHEVs) continue to grow in popularity, while the market share of electric vehicles stagnates. A hybrid 500 could help Fiat get back on track in the U.S. market.
A warning from the CEO of Stellantis
Fiat is under pressure to turn things around quickly. Carlos Tavares recently said at the Paris Motor Show that the company will re-evaluate its brand portfolio by 2026.
"We will look at the performance of each brand towards the two-thirds mark of the Dare Forward 2030 plan, so decisions could be made within two to three years," Tavares said.
Although Fiat has seen an annual increase in its U.S. sales, this is mainly because in 2022, the brand was only selling one model, the 500X. In 2023, despite the presence of both the 500e and the 500X, Fiat only sold 786 vehicles in the U.S. by the end of the third quarter, well behind other Stellantis brands.
The difficult start for the Fiat 500e illustrates the challenges automakers face in the evolving electric vehicle market. With disappointing sales, limited range, and a high price, the 500e has failed to captivate audiences like its gasoline-powered version did.
The introduction of a hybrid version could bridge the gap for buyers hesitant to go all-electric, but the question remains: does Fiat have enough time to make a turnaround?