According to sources familiar with the matter, Stellantis, the owner of Fiat, is set to make an announcement regarding a hybrid variant of its 500e electric car.
The production of this hybrid version is expected to take place at the Mirafiori plant in Italy, as reported by Automotive News Europe.
Stellantis to Unveil Italy-Produced Electric Vehicle
The announcement is expected to be made during a meeting in Turin between CEO Carlos Tavares and union representatives. The unions have been advocating for a new, more affordable model for Mirafiori in order to boost production.
Production rates for the 500e at the Turin site, Fiat's historic home, have been significantly slowed down due to a global slowdown in electric vehicle sales. As a result, Stellantis has implemented prolonged furlough periods for the plant's workers.
The decision could potentially improve the carmaker's relationship with the Italian government, which has frequently expressed concerns about the company's declining production in the country and the manufacturing of certain Fiat and Alfa Romeo models overseas.
Stellantis, Italy's primary automaker, is currently engaged in discussions with the government regarding a strategic plan to increase the group's production in the country to one million vehicles by the end of the decade. This would be a significant boost compared to the approximately 750,000 vehicles produced last year.
According to Industry Minister Adolfo Urso, an agreement is expected within the next few days, which will likely involve the unveiling of new models for Stellantis' Italian plants.
Stellantis' Expansion on Hybrid Vehicle Production
In light of prevailing political and economic pressures, Stellantis has made the strategic move to expand hybrid vehicle production in Italy. Italian Prime Minister Giorgia Meloni expressed dissatisfaction with Stellantis for relocating their production overseas. This move has sparked concerns regarding potential job losses and its impact on the economy.
In addition, Stellantis has been responding to the electric vehicle (EV) challenge by implementing cost-cutting measures through global job shifts, taking inspiration from Tesla's approach.
The company's recent decision to introduce new hybrid models in Italy is viewed as a strategic move to address both cost-cutting measures and the importance of sustaining domestic production while satisfying local stakeholders, according to Benzinga.
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