Stellantis extends production pause for Fiat 500e

Production was initally supposed to come to a standstill for four weeks and was to last until 11 October. “The measure is necessary due to the current lack of orders linked to the deep difficulties experienced in the European electric (car) market by all producers, particularly the European ones,” Stellantis said in September.

The carmaker has now suspended the production pause until 1 November. The reason for this is, once again, weak demand. At the same time, Stellantis CEO Carlos Tavares is now politicising the issue. He will speak to a committee of Italian parliamentarians next Tuesday about Stellantis’ prospects for car production in Italy. Tavares will provide the most exhaustive picture of the group’s automotive production in Italy, the company said in a statement, adding, “The complex international and European situation of the automotive sector requires rapid responses.”

Like other manufacturers, Stellantis is battling a slowdown in electric vehicle sales due in part to the discontinuation of subsidies for them, such as in Germany. Stellantis issued a profit warning for this year only at the beginning of the week: Group CEO Carlos Tavares now only expects an operating profit margin of 5.5 to 7.0 per cent, whereas the company previously expected a double-digit percentage. Most recently, Stellantis’ US business, in particular, has been in the red. In addition, sales in most other regions were weaker than expected.

Despite the temporary production stop in Mirafiori, Stellantis confirmed its plan to invest 100 million euros in the Fiat 500e with a high-performance battery, while the company will start production of the new 500 Hybrid from the beginning of 2026.

reuters.com (Italy), cnn.com (profit warning)