Biplab Das 
In a strategic shift, Stellantis CEO Carlos Tavares is expected to announce that the Fiat 500e will soon have a mild hybrid variant. This move aims to invigorate the Mirafiori factory in Turin, Italy, according to media reports.
The Fiat 500e, currently an all-electric model, will share its platform with a new mild hybrid version. This decision is seen as unconventional since the 500e’s platform was initially designated for electric use only. Production of the existing gasoline model, which started in Poland in 2007, has ceased, prompting the need for this new strategy.
Suppliers have confirmed receiving requests for quotation (RFQs) from Stellantis Italy to ramp up production of the 500 to 200,000 units per year. This target includes both the electric and mild hybrid versions, signifying a substantial increase from previous figures.
In March, Stellantis had already requested quotations to increase the annual production of the 500e at Mirafiori from 77,260 units in 2023 to 175,000 units. The new target of 200,000 units includes an addition of 125,000 gasoline-engine models.
Addressing declining sales
From January to April, Fiat sold 12,288 units of the 500e in the EU, the UK, and EFTA countries, compared to 17,363 in the same period last year. Sales of the combustion-engine 500 also fell from 40,750 to 32,504 units.
Tavares is set to discuss this project with Italian union representatives in Turin. A Stellantis spokesperson mentioned that the company is considering the project but has yet to make a final decision.
Unusual platform conversion
Converting a car designed as electric-only to a hybrid is highly unusual. However, this move is necessitated by the inability to sell the previous gasoline-powered 500 in Europe due to new safety and cybersecurity regulations effective from July 7.
Despite halted sales in Europe, the current gasoline 500 will continue production in Stellantis’ Tafraoui-Orano factory in Algeria, targeting markets in Africa and the Middle East.
Meeting production goals
Adding a gasoline version of the 500e at Mirafiori could alleviate concerns about declining production volumes and help meet the Italian government’s goal of maintaining national auto production at no less than 1 million units per year. Stellantis remains the only volume manufacturer in Italy.
Fiat has faced challenges with the 500e, cutting one of two shifts at Mirafiori in February and implementing temporary layoffs in the following months. Last year, Fiat sold over 104,000 gasoline 500s and more than 62,000 500es in Europe.
Future production plans
Production of the mild hybrid variant, powered by the 1.0-liter, 70-hp FireFly gasoline engine, could start by late 2025 or early 2026. This engine is currently used by the ICE 500 and Fiat’s other minicar, the Panda. This timeline leaves a gap in Fiat’s lineup, with the outgoing gasoline model priced at 17,700 euros in Italy, while the 500e starts at 29,950 euros.
Italian unions are concerned that lagging demand for the 500e in Europe could lead to further reductions in output at Mirafiori, potentially dropping to 40,000-50,000 units from the planned 100,000 for this year, despite the model also being exported to the U.S.
The 500e, launched in 2020 as the New 500, initially showed promise with production reaching 77,500 units in 2022. Fiat had aimed for 90,000 units last year, but production remained flat at 77,260 due to decreased demand in the latter half of the year.
The introduction of a mild hybrid version of the Fiat 500e represents a strategic effort by Stellantis to bolster its production capabilities at Mirafiori and adapt to shifting market demands. The move underscores the company’s flexibility and commitment to maintaining its production goals amidst regulatory and market challenges.
