Stellantis announced on Thursday that it will pause production of the all-electric Fiat 500 for four weeks due to weak demand.
The slowdown in global electric vehicle (EV) sales, influenced by varying policies on green incentives, has prompted car manufacturers to reassess their EV strategies.
“The pause is necessary due to the current lack of orders amidst significant challenges in the European EV market, affecting all manufacturers, especially those based in Europe,” Stellantis stated.
The Fiat 500 is produced in Turin, Italy, at the historic Mirafiori plant. The production halt will commence on Friday, with Stellantis working to navigate this difficult period.
The company plans to invest 100 million euros ($110 million) in the Mirafiori plant to upgrade to a more efficient battery and introduce a hybrid version of the Fiat 500 between 2025 and 2026.
Unions have been advocating for the revitalization of the Mirafiori site, which has seen decreased output in recent years. Stellantis aims to transform the complex into a hub for global innovation and development, crucial for meeting the goals of sustainable mobility.
Earlier this year, Italy launched a $1 billion initiative to encourage drivers to switch to cleaner vehicles, including subsidies for fully-electric cars. However, there have been disagreements between the Italian government and Stellantis regarding the approach to these incentives.