MILAN (Reuters) – Fiat owner Stellantis (NYSE:) is expected to announce on Monday a hybrid version of its small electric car, the 500e, to be built at the Mirafiori plant in Italy, two sources familiar with the matter said, confirming Automotive’s report. European News.
The announcement is expected to come at a meeting planned in Turin between CEO Carlos Tavares and unions, which are asking Mirafiori to provide a new, cheaper model in higher volumes to restart production.
The 500e is assembled at the Turin plant, the historic home of Fiat, but a global slowdown in sales of all-electric cars has forced Stellantis to significantly slow the pace of production, introducing long furlough periods for plant workers.
The move could also help the automaker improve relations with the Italian government, which has often criticized the group for falling production at home and for producing some Fiat and Alfa Romeo models abroad.
Stellantis – Italy’s only major automaker – and the government are negotiating a plan aimed at restoring the group’s production in the country to one million vehicles by the end of this decade from about 750,000 last year.
On Saturday, Industry Minister Adolfo Urso said an agreement was expected in a few days, including announcements of new models for Stellantis’ Italian factories.
Earlier on Monday, Automotive News Europe said production of the new 500e hybrid could begin no earlier than the end of 2025. It added that Stellantis is aiming for a total annual output of 200,000 500s at Mirafiori, including 125,000 hybrids, up from less than 80,000 produced last year.
The 500e Hybrid will be based on the same platform as the 500e EV, while Fiat is phasing out the old 500 version, both petrol and hybrid, which was assembled in Poland.