Carmaker Stellantis announced Thursday that it will cease production of the electric version of its iconic Fiat 500 in Italy due to weak demand, a decision that comes after sales of electric cars in Europe have declined.
The growth of electric vehicles has stagnated in many European countries, partly due to the expiration of government stimulus measures.
“This measure is necessary due to the current lack of orders,” Stellantis said in a statement.
The carmaker said it is investing 100 million euros ($110 million) to give the compact model a more powerful battery and expand production capacity at Fiat’s Mirafiori plant outside Turin.
The current Fiat 500e has a range of up to 320 kilometers (199 miles).
Europe wants to stop selling new cars that run on fossil fuels by 2035. However, the popularity of battery-electric vehicles is hampered by high prices and limited range.
Government stimulus has provided a temporary boost to sales, while new, cheaper and more powerful batteries could increase adoption in the longer term.
Plans to produce more of its own batteries in Europe took a hit earlier this week when a Swedish maker of batteries for electric cars announced it would cut its workforce and scale back its operations.
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