Fiat CEO says new 500e is 'right tool' for big-city drivers. Can this small EV compete?

Due to federal and state emissions mandates, Fiat offered an electric version of its 500 before on the West Coast, prior to the merger that created Stellantis in 2021. But it didn’t sell well, and executives didn’t exactly want it to, since they said every car lost money. François acknowledged that prior version, which was built in Mexico, had been “electrified as an afterthought.”

This time, the 500e has been “designed from the beginning to be an electric vehicle,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions LLC. That means it should lose the company less money, he said, though it’s also unlikely to be particularly lucrative for the company.

Fiorani said the car will surely get some interest from inner-city commuters looking for a practical car. Yet those same customers may be drawn to a Chevrolet Bolt, left over from the 2023 model year, or a Nissan Leaf. Those two EVs have significantly better range and are in the same price range as the 500e, he said.

“The vehicle itself is not going to make big waves in the marketplace,” Fiorani said of the 500e, but it does allow Stellantis to break into the American EV market, “even if it’s just a toe in the water.”

Fiat also needs to appease its dealerships in the United States, Fiorani said, who at this point only have one model to sell — the 500X crossover.

“These dealerships are starved for product, and if they are going to continue to make a go of it, they need to feed them product as fast as possible,” Fiorani said.

François, for his part, said he hopes the new model brings a bit of Italian flair to the U.S. market.

“I’m bringing you a car that’s what every electric car should be, so far,” he said. “It is well made, super fun to drive, so it’s not punishment, it’s the opposite. You are rewarded all the time, you drive it with joy, and a smile on your face.”