What now for Fiat in Australia after the UK makes all-electric switch? The Fiat 500 is still flying solo in Australia with no support locked in

The future of Fiat in Australia has taken another turn with the Italian brand’s United Kingdom market switching to an entirely electrified line-up.

Beginning in July, Fiat UK will only sell electric and hybrid models according to a report from Autocar. It comes as the brand, now under the control of French-Italian-American conglomerate Stellantis, introduced hybrid versions of the 500X and Tipo earlier in 2022 which meant all models in the range had an electrified option.

This decision means Fiat Australia has lost a key right-hand drive ally for future non-electrified models. The current Australian line-up consists of the 500, Abarth 595 and the Ducato commercial van.

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The 500 sold in Australia is the same petrol-powered model that first launched in 2008 and has been facelifted through the years. Globally Fiat introduced a new, all-electric 500e in 2020 but the Australian arm has so-far declined to take it.

The good news is the petrol-powered 500 is still being manufactured, but with Fiat UK dropping the 1.2-litre four-cylinder model it does raise questions about the lifespan of this aging city car.

Fiat’s future in Australia has been a subject of debate for several years, since the decision to trim the line-up to focus on the 500, which meant the 500L, 500X and Panda were all dropped. Sales suffered as a result, with Fiat selling only 739 models in 2021, compared to 2414 five years previously in 2016.

In contrast, Fiat UK offers the 500e, 500, 500X, Panda and Tipo.

One positive for Fiat Australia is that the other major right-hand drive market, Japan, is also still selling the 1.2-litre 500, albeit alongside the new 500e. 

In 2020, then Fiat Chrysler Automobiles (now Stellantis) Australia boss, Kevin Flynn, said the company was committed to the Fiat and Alfa Romeo brands, despite poor sales, but said the focus was on reviving the Jeep brand.

“We are as serious about Alfa Romeo as we are on Jeep, it will not surprise you that the initial focus was put on Jeep because it is the lion’s share,” Flynn told CarsGuide in August 2020.

“We’ve got a core of dealers now that have operations dedicated to Alfa and Fiat 500 instead of it being mixed up with all the different other brands… we are pulling together a team internally that will only work on these products and brands.”

However, it’s worth noting that at the time, Flynn expressed confidence that the facelifted 500X would be offered locally but never did. Fiat Australia has yet to set a firm timeline when - or even if - the 500e will be available locally so the future of the brand remains uncertain.

UPDATE: A spokesperson for Fiat Australia wouldn't comment on the future of the petrol-engined 500 at this time.