Stellantis extends Fiat 500e production halt amid weak EV demand - report

Investing.com -- Stellantis (EPA:STLAM ) (NYSE:STLA )' CEO Carlos Tavares is scheduled to address an Italian parliamentary committee next week regarding the future of the company’s production activities in Italy, following concerns about weak demand for electric vehicles, Reuters reported on Tuesday. 

The hearing will occur on October 11, shortly after the company extended the suspension of its Fiat 500 electric city car production until November 1 due to low orders, the report added. 

The Fiat 500e is manufactured at the historic Mirafiori plant in Turin, northern Italy. Production had initially been paused until October 11, but the halt has now been prolonged. 

Stellantis said Tavares would offer a detailed overview of the company’s production in Italy, acknowledging the urgent need for responses to the complex challenges facing the global and European automotive sectors.

A slowdown in global EV sales, partially driven by inconsistent policies on green incentives, has prompted many automakers to reassess their EV strategies. 

In an earlier statement, Stellantis informed trade unions that the electric car market in Europe is currently "in deep trouble," the report said.

Despite the temporary halt, Stellantis reaffirmed its plan to invest  €100 million in the Fiat 500e, which will feature a high-performance battery. Additionally, the company plans to start producing the new 500 Hybrid in early 2026. 

Earlier this year, Italy introduced a $1 billion initiative to encourage the transition to cleaner vehicles through subsidies for fully electric car purchases, the report added. 

Source: Investing.com