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The Stellantis assembly plant, where the new Fiat 500e is being built, will halt operations until at least August 6. This production stoppage includes recent job cuts, with nearly 1,520 positions gone from the company. Thankfully, Stellantis offers impacted workers voluntary exit packages to offset some of their financial hardships. This production stoppage could mean the new Fiat 500e is dead before it gets going.

Fiat hedges bets on this one model in America

Moving to a single model isn’t a new strategy for Stellantis, formerly FCA. The Alfa Romeo 4C was a single model that brought the brand’s name back to America, allowing the slow but steady expansion to a sedan and SUV after the 4C gained traction.

Fiat has struggled to pique interest in the United States for the past few years. The brand’s move to a single Fiat 500 version powered by electricity is intriguing but might not be the right one. The Fiat 500e could simply be poorly timed, but it also has such a low driving range figure that it’s not practical for most American drivers.

A cornerstone factory in trouble

The Mirafiori Assembly Plant, located in Turin, Italy, produces the Fiat 500e. This factory has been the birthplace of some iconic Maserati models, including the Ghibli, Quattroporte, and GranTurismo.

Unfortunately, the current economic climate means cutting back and slowing production. Many Stellantis dealerships in America have more inventory on lots than they should, which signals the need for production to slow down. This problem could be a global issue for the automaker.

Although the Fiat 500e is brand new, it’s facing issues due to evolving consumer preferences and demands. Some of that could be the desire for hybrid and plug-in hybrid models over fully electric vehicles.

2024 Fiat 500e driving on a street in Italy.
2024 Fiat 500e | Fiat

A systematic reset for Stellantis and the Fiat brand

Although the Fiat brand offers only one model in the United States, it still has several models in other markets, especially Europe. Still, the Mirafiori plant could be in trouble. Stellantis is stepping up to the challenge by investing in the cornerstone plant. This could mean bringing a gas-powered version of the Fiat 500 back to the market.

In order for the Mirafiori plant to remain a viable part of the Stellantis family, as many as 200,000 units of annual production is necessary. Could the Fiat 500e be part of that solution, or is this small electric vehicle dead before it starts?

Source: MoparInsiders