Fiat President Olivier François announced on Friday that parent company Stellantis plans to manufacture more than 100,000 units annually of its new 500 hybrid small car, aiming to revive its struggling production in Italy.
The Stellantis group produced 475,000 vehicles in Italy last year, compared to more than 751,000 in 2023, with car production in particular declining by 46% to its lowest level since 1956.
This is due to a combination of factors, including declining market demand, particularly for electric vehicles, increasing competition from Asian manufacturers, and factory redesigns in preparation for the launch of new models.
“This is the 500 for real people, the 500 for pragmatism,” François said during a media preview of the car, where some prototypes were shown to the press.
The new Fiat 500 hybrid, which will be manufactured starting in November at the Mirafiori plant in Turin, Italy, will retail for around €17,000 ($20,000) and will be equipped with a 12-volt lithium battery.
Fiat’s electric 500 production reached just 25,000 units last year, as the Mirafiori suffered several shutdowns due to low demand and forced furloughs.
According to Fiat’s CEO, quoted by Reuters, the Italian company plans to launch an improved, more affordable version of the electric 500 in 2027, with a target retail price of €20,000 or less, primarily thanks to batteries that will be manufactured in-house.
