Fiat’s Decision to Create New Petrol-Engined 500 Driven by Slow EV Sales and External Factors
Fiat has recently announced its decision to develop a new petrol-engined version of the popular Fiat 500 model, citing slow electric vehicle (EV) sales and external factors as the driving forces behind this move. According to Fiat’s CEO Olivier François, the decline in demand for sustainable solutions, exacerbated by the COVID-19 pandemic and raw material shortages, led the brand to extend the life of its internal combustion engine (ICE) model. The new Fiat 500 Ibrida, set to arrive by early 2026, will be based on a modified version of the 500e’s EV platform, ensuring compliance with the EU’s upcoming General Safety Regulations 2.
European Buyers Turning Their Backs on EVs
François revealed that European buyers have been turning their backs on EVs, which prompted Fiat to react to slow EV sales by updating the previous-generation hybrid model. Out of the total 173,187 Fiat 500 sales last year, 108,943 were petrol-engined. François emphasized that while Fiat believes the future of urban mobility is electric, the transition to EVs has not happened as quickly as anticipated. He acknowledged that factors such as COVID-19, raw material shortages, and a lack of government incentives have contributed to the slower adoption of sustainable solutions.
The Hybrid Model as a Bridge to Electrification
Despite the decision to develop a new petrol-engined 500, François made it clear that this would be the final ICE model from Fiat. He stated that after the 500 Ibrida, Fiat will focus solely on electric vehicles. The upcoming 2035 EU ban on the sale of all new ICE cars has likely influenced this decision. François believes that the transition to electric vehicles will eventually happen, but it has been slower than expected. The hybrid model serves as a bridge to electrification, allowing Fiat to meet customer expectations while preparing for a fully electric future.
Stellantis Brands Continuing to Offer ICE Models
Fiat is not the only brand within the Stellantis group that is continuing to offer new ICE models despite the forthcoming ban. Other brands, such as Jeep and Citroën, have also introduced petrol options alongside their EV offerings. For example, the Jeep Avenger was initially planned as an EV-only model in the UK but now offers a petrol version as well. This strategic approach allows these brands to cater to different market demands and gradually transition to an all-electric lineup.
Conclusion
Fiat’s decision to develop a new petrol-engined 500 model reflects the challenges faced by the automotive industry in transitioning to electric mobility. Slow EV sales, compounded by external factors like the COVID-19 pandemic and raw material shortages, have prompted Fiat to extend the life of its ICE model. However, the brand remains committed to electric mobility and sees the hybrid model as a stepping stone towards a fully electric future. With the upcoming EU ban on new ICE cars, Fiat’s decision aligns with the industry’s overall shift towards electrification. It also mirrors the approach taken by other Stellantis brands, who are finding a balance between offering ICE and EV options to meet customer expectations while preparing for a future dominated by electric vehicles.
