Everyone loves a good comeback or underdog story. But sometimes it might be better to give up the fight. Stellantis isn’tready to let go of one Italian staple. It invested $110 million to keep one failing SUV alive. 

Stellantis gambles with $110 million on the Fiat 500e 

One positive thing you can say about Stellantis is that it’s confident. Stellantis believes it can turn failing brands into significant sources of profit as big names like Ram and Jeep struggle. 

Even though the Fiat 500e continues to face dismal sales, Stellantis doesn’t want to give up. That’s why it just invested $110 million into developing the 500e over the next few years. 

The 500e has sold 439 models since it entered the American market earlier in 2024. Sales have also been weak in Europe. 

In fact, sales are so low that production of the 500e was halted in September. The historic Mirafiori plant in Turin, Italywas supposed to only be closed for four weeks. But the shutdown has been extended through November 1, 2024. 

Also, Fiat is on the chopping black. Stellantis CEO, Carlos Tavares recently shared that the company will be reviewing its portfolio that includes 14 automotive brands as early as 2026. 

Investing $110 million into a brand that could be sold off feels odd. Fiat is one of the weakest brands but decisions probably won’t be made until 2030 or later. 

But why is the little Fiat SUV struggling? Perhaps because it’s only available with an electric powertrain. Bringing back a gas-powered option could bring people back to the egg-shaped compact SUV. 

Also, the 500e has an MSRP of $32,500, making it very expensive for a compact option. Plus, it only has an EPA-estimated range of 141 miles on a single charge.

That’s a pretty limited range and interest in electric vehicles is cooling. However, AutoBlog shared that Stellantis is working on a Fiat 500 hybrid, which could reignite interest in the tiny SUV if the price is low enough.