Fiat is set to rejuvenate its iconic 500 model by introducing a new gas-electric hybrid version, aiming to offer an affordable, but still fuel-efficient, alternative to its fully electric counterpart.
This move comes as Stellantis, Fiat's parent company, responds to shifting market dynamics and consumer preferences. The automaker is expected to unveil the production model this November.
Technical Specifications
Fiat previously sold a 500 hybrid in Europe but had to discontinue the model last year due to new EU cybersecurity regulations that rendered it non-compliant.
The hybrid powertrain for the new model includes a 1.0L FireFly 3-cyl. being manufactured in Termoli, Italy. This engine is already used in other models including the Fiat Panda Hybrid, but it is being revised for this new hybrid version. Fiat says the engine will be mated to a 6-speed manual gearbox.
Built on the STLA City platform – the same as the electric 500e – the hybrid model will share design elements and technological features with its fully electric sibling, including the Uconnect 5 infotainment system with a 10.25-in. (26-cm) touchscreen, wireless Apple CarPlay and Android Auto, and Level 2 autonomous driving capabilities.
Production and Market Strategy
Production of the Fiat 500 Hybrid is scheduled to begin in November at the Mirafiori Assembly Plant in Turin, Italy. Stellantis aims to produce over 100,000 units annually to meet anticipated demand.
The 500 hybrid is part of Stellantis's broader strategy to expand its hybrid lineup in Europe, with plans to offer 36 hybrid models across its brands by 2026.
The hybrid 500 is expected to be priced slightly above the prior-generation Poland-assembled 70-hp FireFly 1.0L hybrid model, starting at approximately $19,440 (€18,000), making it a more affordable option compared to the fully electric 500e, which starts at around $32,560 (€29,000).
In 2023, global sales of the Fiat 500 model were 112,567 units, per company reports. This represented a significant decline from previous years, reflecting shifting market dynamics and increased competition in the city car/compact car segment. Global sales in 2024 were off 11% from the year earlier. That suggests Stellantis’s goal of 100,000 sales for the revised 500 lineup might be in line with market demand.
North American Prospects
Currently, there are no confirmed plans to introduce the Fiat 500 Hybrid to the North American market. Fiat's focus in the U.S. remains on the all-electric 500e. However, given the growing interest in hybrid vehicles, Stellantis could consider expanding the hybrid 500's availability to North America in the future, though the current Trump Admin. tariffs would play a big role in that decision.
Fiat's reintroduction to the U.S. market in 2011 was met with enthusiasm, but the brand has struggled to maintain traction in the years since. In 2018, Fiat sold about 15,500 vehicles in the U.S., per Wards Intelligence data, a 41% decline from the previous year. By 2024, sales had plummeted to just 1,528 units, despite a 153% volume increase over the prior year, highlighting the brand's marginal presence in the U.S. market. Today, it just sells the 500e. Stellantis is reviewing its brand distribution strategy this year but has not yet announced if it will continue with Fiat in North America.
The decline in U.S. sales has been mirrored by a reduction in Fiat dealerships across the country. In 2024 alone, the brand lost 20 franchises, reflecting the challenges faced by dealers in maintaining profitability amid dwindling demand. It still has over 300 sales points, but they are all combination stores with other Stellantis brands.
