Fiat Announces Launch of New Hybrid-Engined 500 in 2026
Italian automaker Fiat has confirmed its plans to release a new hybrid-engined version of its popular Fiat 500 model in 2026. The announcement secures the future of the petrol-powered supermini, which has been a bestseller for the brand. The new model will be powered by the same ‘Firefly’ 1.0-litre mild-hybrid engine as the current 500 and the Fiat Panda. However, it will utilize the bespoke architecture of the battery-electric 500e, a move that is unprecedented in the European car industry.
This decision by Fiat is seen as a response to two significant challenges. First, the brand needs to increase production rates at its Mirafiori plant in Italy due to slow sales of the 500e and its Abarth-branded hot hatch counterpart. Fiat had already reduced shifts at the plant in February, and if sales did not pick up, there was a possibility of temporarily halting production. Additionally, Fiat must address new cybersecurity standards introduced in the European Union, which would prevent the existing combustion-engined 500 from being sold without expensive rehomologation efforts.
The petrol-powered Fiat 500 has been a crucial model for the Italian brand since its launch in 2007. Last year, out of the 173,187 Fiat and Abarth 500s sold across Europe, 108,943 were petrol-powered. Therefore, developing a new petrol 500 not only secures the future of the model but also opens doors for a second generation of the Abarth 595 hot hatch.
Fiat CEO Olivier Francois emphasized that this move is a commitment to the Italian car industry and reinforces Italy as their driving force and future. The decision to produce the new petrol-powered 500 was prompted by slow sales of the 500e in Italy, where 90% of Mirafiori production is exported. Additionally, this move will free up crucial space at the Tychy plant in Poland, allowing Stellantis, Fiat’s parent company, to start building Leapmotor’s new T03 supermini.
The new variant, named the 500 Ibrida (hybrid), will utilize engines made at Stellantis’s factory in Termoli, exhausts fabricated in Napoli, and gearboxes assembled in Mirafiori. In addition to the announcement of the new hybrid model, Fiat plans to invest €100 million (£85m) into the 500e, with a focus on redesigning its platform for new battery technologies that aim to improve its affordability. This suggests that a facelift for the 500e is also expected around 2026.
The confirmation of Fiat’s plans to launch a new hybrid-engined Fiat 500 in 2026 not only secures the future of the petrol-powered supermini but also highlights the brand’s commitment to the Italian car industry. This move comes as a response to slow sales of the 500e and the need to comply with new cybersecurity standards. With the petrol 500 remaining a lynchpin for Fiat and paving the way for a second generation of the Abarth 595 hot hatch, Fiat aims to increase the number of 500s on the road in Italy and continue investing in Italy, the 500, and Mirafiori.