Fiat 500 Goes Hybrid to Boost Slumping Sales
Facing declining sales of its electric 500 model, **Fiat** is turning to a combustion engine, launching the Fiat 500 Hybrid in Italy, hoping to revive customer interest across Europe.
Reversing Course: From Electric to Hybrid
Calling the shift a “pragmatic car”
move, **Olivier Francois**, CEO of the **Fiat** brand, explained that the 500E model will now become the 500 Hybrid. This pragmatism involves moving away from full electric power to a mild-hybrid engine.
The new model features a simpler 12-volt mild-hybrid system, allowing for minimal braking energy recuperation, a first for a car initially designed as an EV. The original Fiat 500E was initially successful as a premium car, but sales quickly dropped off with the entry of larger and cheaper EVs.
Pricing and Performance
The Fiat 500 Mild-Hybrid is priced around 17,000 euros in Italy, making it competitive in the A segment, rivaling even the Dacia Spring electric car. The engine is a 1.0-liter, three-cylinder mild-hybrid with 70 hp, paired with a six-speed manual gearbox. The electric motor is supported by a 3.6 kWh battery. Technical data suggests a 20-30% reduction in fuel consumption through energy recovery.
Production Plans
Production of the Fiat 500 Hybrid is slated to begin in November at the Mirafiori Plant, alongside the electric version. The hybrid will share the same body styles as the EV: hatchback, 3+1, and cabrio. **Fiat** anticipates an annual output of around 100,000 hybrid units.
However, a recent report indicates that overall hybrid car sales in Europe are projected to increase by 20% in the next year, suggesting a potentially favorable market for the new Fiat 500 Hybrid (Statista 2024).
Sales Decline Spurs Hybrid Decision
The Fiat 500E sales have dwindled, with only 7,000 units sold in the first five months of this year—a 50% decrease from the same period in 2024. The Mirafiori Plant has even been forced to halt operations multiple times.
Remembering the Original
The first-generation Fiat 500 ceased production about a year ago because it could not be updated to meet current European regulations. The old Fiat 500 had annual sales exceeding 100,000 vehicles.
