FIAT 500 mild-hybrid to enter production in Italy in 2026

The latest-generation FIAT 500, conceived from the outset as a 100% electric model, is set to be adapted to accommodate a combustion engine. It will form part of a mild-hybrid system, with production in Italy expected to begin in early 2026.

Carlos Tavares, Stellantis’ chief executive, made the announcement following reports that the brand had approached suppliers for quotations linked to higher Fiat 500 output at the Mirafiori plant in Turin, Italy.

Fiat 500 electric sales below expectations

It now appears those rumours were very close to the mark. Although it enjoyed a strong start during its first two years, Fiat 500 electric sales have levelled off and are even declining, falling short of Fiat’s expectations.

Sales of the electric Fiat 500 had not been meeting FIAT’s targets. The aim had been to maintain an annual production rate of between 90,000 and 100,000 units. However, the “cooling” in demand for electric cars is affecting production of the city car. Last year, the brand built only around 80,000 units.

According to Automotive News Europe, Stellantis therefore expects to lift annual Fiat 500 production to 200,000 units from 2026, with 125,000 of those set to be the mild-hybrid version.

Tavares nevertheless points out that keeping models affordable, particularly electric vehicles, does not depend solely on manufacturers. Other external factors beyond their control must also be considered, increasing their exposure to risk. These include energy costs, the expansion of the charging network and even the long-term continuation of state subsidies.

A “tense” relationship between Stellantis and Italy

The Fiat 500 mild-hybrid could also help ease tensions between Stellantis and the Italian government. The group and the administration have been in talks about raising vehicle production in Italy to at least one million units a year. In 2023, however, only 750,000 units were produced.

The existing strain could hardly be more apparent, given recent events in which Alfa Romeo had to change the name of its new Milano SUV to Junior, while the small Fiat Topolino was “confiscated” over the improper use of the Italian flag.

The anticipated substantial rise in Fiat 500 production in Italy could prove crucial to improving relations between the two sides, while also enabling greater sales and profitability for the iconic city car.

Source: Automotive News Europe