Turin, Italy (Reuters) – Fiat plans to manufacture more than 100,000 units per year of its new small hybrid car 500, a model on which Stellantis put to relaunch its production in difficulty in Italy, said Olivier François, the director general of the brand on Friday.

Stellantis, resulting in 2021 from the merger between Fiat Chrysler and the PSA-Peugeot group, manufactured 475,000 vehicles in Italy last year, against more than 751,000 in 2023, the production of cars having dropped by 46% to reach its lowest level since 1956.

This decrease is the result of low demand, especially for electric vehicles (VE), increased competition from Asian manufacturers and factory reshuffle for new models.

“This is the 500 for people of the daily life, the 500 pragmatic,” said Olivier François during a press presentation in preview of the car, some of which were revealed.

The new 500 hybrid, which will be assembled from November in the Mirafiori complex in Turin, Italy, alongside the existing entirely electric version, will cost 17,000 euros, said Olivier François. It will be equipped with a 12 -volt lithium battery.

The manufacturer plans to produce 5,000 units this year, he added.

The production of the electric 500, sold nearly 30,000 euros, was limited to 25,000 units last year, Mirafiori having undergone several stops due to low demand, resulting in partial unemployment.

The Fiat Managing Director announced an improved and more affordable version of the 500 VE in 2027, with a targeted sale price of “20,000 euros or even less”, mainly thanks to the internal batteries.

Stellantis also works on the new generation of the 500, expected around 2030, which will be produced in Mirafiori.

“We are in the process of designing it, it will be electric and also hybrid depending on the regulations and the response of the market in the years to come,” added Olivier François.

(Report by Giulio Piovaccari, Elena Smirnova, edited by Blandine Hénault)

Copyright © 2025 Thomson Reuters