Stellantis, the multinational automotive manufacturer, announced that it will halt production of the electric Fiat 500 model in Europe for four weeks due to a lack of orders. The slowdown in sales of electric vehicles globally has forced carmakers to adjust their EV plans, with Stellantis citing difficulties in the European electric car market.
The fully electric Fiat 500 is produced at the historic Mirafiori factory in Turin, Italy, and the company is investing in the site to produce a hybrid version of the model starting in 2025-2026. Unions have been urging Stellantis to revamp the factory by building a new high-volume, affordable car.
Italy has implemented a plan to support the transition to cleaner vehicles, including subsidies for fully electric cars. However, disagreements between Rome and Stellantis over government incentives have arisen. Additionally, tensions with China have escalated after the European Union imposed tariffs on Chinese EV imports, leading to concerns of a potential trade war.
While there are growing divisions within Europe regarding tariffs on Chinese EVs, the Spanish prime minister, Pedro Sánchez, has called for a compromise between the EU and China to avoid a trade war. China is a significant producer of electric cars, with high sales figures, and is also the world’s largest carbon emitter.
Overall, the automotive industry is facing challenges in the EV market due to varying policies on green incentives and competition from other countries like China. Stellantis’s decision to halt production reflects the broader issues being faced by carmakers worldwide as they navigate the transition to sustainable mobility.
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