Stellantis is set to launch a new hybrid Fiat 500 in November 2025, priced at $20,000 (17,000 euros), aiming to revitalize its struggling Italian manufacturing, according to Fiat’s CEO Olivier Francois. The move comes as the automaker grapples with a 46% drop in Italian car production in 2024, hitting a historic low since 1956, driven by weak electric vehicle (EV) demand and rising competition from Asian manufacturers. Reuters reported the hybrid model will be produced at the Mirafiori complex in Turin, alongside the existing 500 EV, with a target of over 100,000 units annually.

Hybrid Technology for Affordability

The new hybrid Fiat 500 integrates a 12-volt lithium battery, offering a cost-effective alternative to the pricier 500 EV, which retails for nearly $30,000 (25,500 euros). “That’s the 500 for real people, the pragmatic 500,” Francois stated during a media preview, emphasizing its appeal to budget-conscious buyers. Stellantis plans to produce 5,000 units in 2025, with production scaling up in 2026. The hybrid’s lower price point addresses the sluggish EV market, where the 500 EV saw only 25,000 units manufactured in 2024, leading to frequent production halts and worker furloughs at Mirafiori.

Stellantis Launches $20,000 Hybrid Fiat 500 To Boost Italian Production

Strategic Shift to Meet Market Demands

Stellantis’ pivot to a hybrid model reflects broader industry trends, as EV adoption faces hurdles from high costs and limited charging infrastructure. The hybrid 500 bridges the gap, offering fuel efficiency and lower emissions without the range anxiety of fully electric models. This aligns with consumer preferences for practical, affordable vehicles, especially in Europe, where urban drivers favor compact cars. The automaker’s Italian output, which fell from 751,000 vehicles in 2023 to 475,000 in 2024, underscores the urgency of this strategy to restore production levels and stabilize jobs.

Future Plans for Electric and Hybrid Models

Looking ahead, Stellantis is developing an upgraded 500 EV for 2027, targeting a price of $20,000 (17,000 euros) or less, enabled by in-house battery production. Francois also revealed plans for a next-generation 500 around 2030, which will offer both electric and hybrid variants.

“We’re designing it now, it will be electric and also hybrid depending on regulation and market response in coming years,” he said.

This flexibility ensures compliance with evolving emissions standards while catering to diverse consumer needs.

Industry and Economic Implications

The hybrid 500’s launch is a lifeline for Stellantis’ Mirafiori plant, which has faced operational challenges amid low EV demand. By diversifying its lineup, Stellantis aims to counter competition from Asian manufacturers and regain market share in Europe. The $20,000 price point positions the hybrid 500 as a strong contender in the compact car segment, potentially boosting Italy’s automotive sector. However, success hinges on consumer reception and Stellantis’ ability to streamline production amidst global supply chain pressures.

This strategic move not only addresses immediate economic concerns but also sets a precedent for automakers balancing electrification with affordability, shaping the future of urban mobility.

Photos courtesy of Stellantis / Fiat