Fiat the Latest to Backpedal on EV Strategy with Plans for ICE 500e

Despite a rumour emanating at the beginning of April, it seems that Fiat’s all-electric 500e will make a provision for a combustion alternative amidst slow EV adoption and several automakers backpedalling on electrification strategies. 

Image: Fiat

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It seems it wasn’t an April fools joke – Fiat‘s 500e has been confirmed to receive a combustion engine after all. Despite initially being launched as a purely electric city car, the iconic hatchback will now be produced with an ICE powertrain after Stellantis, Fiat’s parent company, confirmed a hybrid 500 will begin production at the Mirafiori factory in Italy starting in Q1 2026.

ICE Strategy

Image: Fiat

The move to reintroduce a combustion engine variant highlights the shifting dynamics in the automotive industry. The anticipated rapid transition to EVs has slowed, with many consumers reevaluating their choices as EV incentives are reduced or phased out. This market shift has prompted automakers to reconsider their strategies and maintain conventional powertrains in their lineups.

Related: Fiat Reconsidering Continuing ICE in 500 Models

Fiat isn’t the first, and will likely not be the last either. As of now, Ford’s European division has expressed intentions to extend EV-only targets beyond 2030, which is seemingly what Fiat is following suit on after initially planning to be all-electric by the close of the decade. In conjunction with this hybrid 500e news, there is also hope that a future high-performance Abarth 500e may retain some form of ICE power, which will fortunately do away with the speaker that replicates a combustion motor’s sound.

Related: Fiat Will Debut Five Retro Models including Double Cab Bakkie

Additionally, Fiat has not ruled out continuing sales of the Panda until 2029, which would mark 18 years since its introduction. This would allow the classic model to coexist with the next-generation Panda, set to debut on July 11 to celebrate Fiat’s 125th anniversary.

Fiat’s decision to retain conventional powertrains alongside EVs reflects a broader trend in the industry, as manufacturers adapt to evolving market conditions and consumer preferences.

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The post Fiat the Latest to Backpedal on EV Strategy with Plans for ICE 500e appeared first on CAR Magazine.


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