Stellantis, the parent company of Fiat, has announced a four-week suspension of production for the Fiat 500e electric vehicle (EV) due to sluggish demand in the European market.

Starting September 13, Stellantis will pause production at the Mirafiori factory in Turin, Italy. This halt impacts both European and U.S. markets, with only 204 units of the 500e sold in the United States (U.S.) so far in 2024. Stellantis attributes the suspension to “deep difficulties experienced in the European electric car market.”

This pause is not the first for Stellantis. The company previously halted 500e production from mid-February to early March 2024, from late April to early August 2024, and again in late 2023.

To address the sales slowdown, Stellantis is investing €100 million ($110 million) in the Mirafiori plant to implement a higher-performance battery. In addition, a hybrid version of the 500 is in development, projected to launch between 2025 and 2026.

Stellantis aims to transform the Mirafiori plant into a “global innovation and development site.” Stellantis further mentions in a statement, “The Mirafiori complex is undergoing a deep transformation, with the aim of making it a true global innovation and development site, a key choice if we are to meet the challenge of the transition to sustainable mobility to which we are called.”

Fiat’s production pause reflects a broader trend in the automotive landscape, with a global EV sales slowdown affecting multiple automakers. Varying policies on green incentives across different markets, along with changes in EV strategies by automakers includingToyota, GM, and Volvo, are also shaping the industry.

Read More: Fiat Set To Bring Built-In Charging Cable For Upcoming EVs

As the automotive industry navigates the complexities of the EV market, Fiat’s production pause serves as a reminder of the challenges facing automakers in balancing production with buyer demand and evolving regulatory landscapes.

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