Disappointing results: Stelantis stops production of electric Fiat 500
Franco-Italian car giant Stelantis has announced that it is halting production of the Fiat 500 electric model for four weeks due to weak demand.
A large number of electric car manufacturers are facing a decreasing number of customers in Europe.
Stelantis, which also owns a number of other brands such as Maserati, Opel, Citroen and Peugeot, produces the Fiat 500 electric model in Turin at the Mirafiori factory.
The company also announced that it will significantly transform that car factory and invest 100 million euros in it. That investment is expected to be for the development of a hybrid version of the now all-electric model.
The company decided on this move as the European electric vehicle (EV) market continues to see a decline in demand, which is particularly affecting European electric vehicle manufacturers, who are struggling to keep up with China’s.
This has led several European electric vehicle manufacturers, as well as battery manufacturers, to readjust their production and expectations to account for reduced demand in the coming months.
However, it is not just European electric vehicle manufacturers that are struggling with this, as various green incentive policies at the global level have also created obstacles for international electric vehicle manufacturers.
The EU has also recently imposed higher tariffs on Chinese electric vehicle manufacturers, arguing that Beijing is unfairly subsidizing these companies by allowing them to sell their vehicles in Europe at much lower prices than they actually are.
However, the decision could have negative consequences for the EU’s intentions to reach zero greenhouse gas emission targets, as Chinese vehicles have been the most popular among electric vehicle owners in the EU due to price.
Further decline in the American market
Stellantis reports disappointing financial results with weaker profits in the first half of 2024 as its North American market share continued to decline.
The company recorded a net income of 85.0 billion euros in the first half of the year, which is a decrease of 14 percent compared to the same period last year.
Chief Executive Officer (CEO) of Stelantis, Carlos Taveres, said that it was necessary to introduce corrective measures to solve economic problems.
“We have started an exciting product promotion, with no less than 20 new vehicles to be launched this year, and that brings greater opportunities when we do well. We have significant work to do, especially in North America, to maximize our long-term potential,” he said.
Source: Beta
Photo: unsplash
Source: bizlife.rs
