Is this electric car the canary in the coal mine for EVs? Fiat 500e production pause extended as demand slumps

Carmakers in Europe and the US are pulling back their electric car plans in a worrying sign for the zero-emissions technology.

Fiat’s parent company Stellantis, which also owns Peugeot and Jeep among others, has extended the production pause on the mini 500e electric hatchback.

The company originally slated to halt production for four weeks ending on October 13, but is now keeping the production line quiet until November 1 as demand continues to flatline.

When Fiat announced the first production pause it said: "The measure is necessary due to the current lack of orders linked to the deep difficulties experienced in the European electric [vehicle] market by all producers, particularly the European ones.”

Stellantis told trade unions in a statement this week the European electric car market was “in deep trouble”.

According to Jato Dynamics, sales for the Fiat 500 (both petrol and electric) were down 24 per cent across Europe in the first six months of 2024 compared to last year, with Stellantis selling 74,885 examples, the majority of which were petrol models.

The 500e is built at Fiat’s northern Italian plant, which could present some political headaches for the brand.

Stellantis boss Carlos Tavares will address an Italian parliamentary committee next week on the prospects of the carmaker’s Italian production, according to Reuters.

Stellantis has already fallen foul of the Italian government after it called its new Polish-made Alfa Romeo SUV 'Milano'. It was then forced to change the name a few days after it was announced.

The Milano name falls under the same protections as food and wine, with the government banning companies from putting Italian-sounding names on products of foreign origin.  

Alfa Romeo settled on 'Junior' instead of Milano.

Stellantis isn’t the only carmaker struggling to make the sums add up on electric cars.

Mercedes-Benz has reportedly pulled the pin on new electric car platforms and Volkswagen is considering closing factories in Germany.

Most US carmakers have walked back plans to go fully electric and will continue to make petrol-powered cars for longer.

Volvo is another brand to discontinue its all electric commitment.

Closer to home many carmakers have been forced to slash prices on their electric cars in Australia as competition increases from and influx of affordable new Chinese brands and more options from legacy manufacturers.

Japanese brands that have focused on hybrids rather than full electric cars are on a winning streak.