Stellantis To Suspend Production Of Fiat 500 EV At Turin Plant Again: What's Going On?

Stellantis N.V. STLA is ready to suspend auto production at its Italian Mirafiori plant in Turin.

What Happened: The automaker announced confirmed Wednesday, Nov. 27, that production will halt from Dec. 2 to Jan. 5 due to persisting weakness in sales for the electric Fiat 500 city car.

The suspension is due to the weakness in demand in the European markets, which account for 97% of Mirafiori’s production, and luxury cars in countries like China and the U.S.

According to Reuters, the automaker had informed the trade unions about suspending assembly operations beginning Dec. 2 and 17, after the prior closure of the plant for end-year holidays from Dec. 18 to Jan. 5.

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In October, Stellantis shared plans to extend the suspension of its Fiat 500 electric city car production in Turin until Nov. 1, after halting the production until Oct. 11 due to weak demand.

Why It Matters: Stellantis stock plunged 45% year-to-date as it struggled to transition from traditional combustion engines to electric vehicles (EVs). The company postponed investments and other plans related to EV production.

Also, at the end of October, Stellantis recalled 33,777 Ram 1500 vehicles in the U.S. due to safety concerns, marking its third recall.

Stellantis stock also got a hit this week from President-elect Donald Trump suggesting 25% tariffs on imports from Canada and Mexico, where the automaker has four significant factories.

Investors can gain exposure to Stellantis through SPDR S&P Kensho New Economies Composite ETF KOMP and First Trust Exchange-Traded Fund VI First Trust New Constructs Core Earnings Leaders ETF FTCE.

Price Action: Stellantis stock is up 2.11% at $13.06 premarket at last check Friday.

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