Fiat's future in Europe is small, electric vehicles

Milan, Italy – The Fiat brand in Europe will be reduced to a few models based around an electrified 500 lineup and the Panda, Fiat Chrysler Automobiles executives said.

"The space for Fiat in Europe is going to be redefined in a more exclusive area," FCA CEO Sergio Marchionne told analysts during the unveiling of the company's business plan on 1 June.

Citing a need to cut products that lacked ‘pricing power’, Marchionne said: "Given the EU (future emissions) regulations, it is very difficult for mass-market carmakers to be very profitable.

The 500 and Panda minicars are the two models in Europe "where Fiat can play best," Marchionne said.

Fiat dominates the minicar segment in Europe. The 500 was the region's top-selling minicar last year, followed by the Panda – both far ahead of third placed Volkswagen Up.

The 500 will get full-electric and mild hybrid powertrains, FCA’s CO2 reduction presentation on Friday showed. The model is to be introduced as soon as possible to try to fulfill the 2020 EU emissions targets.

"Our plan is to focus the Fiat brand on products that are able to cover the cost of the new electrified technologies," Marchionne said.

The full-electric 500 will give Fiat a car that will appeal to buyers in cities where access to internal combustion will be restricted, he added.

Marchionne said the Turkey-produced Tipo compact family will be discontinued in the EU once stricter emissions rules are in place because “the technology to make the car viable for EU standards is too costly."

Various Tipo versions will continue in the markets in Europe outside of the EU, and also in the Middle East and Africa.

Marchionne kept his options open as to where the new Fiat models would be produced. "We still haven’t decided where the electric 500 will be built," he said.

The current 500 is made in Tychy, Poland, while the current 500e is built in Mexico and sold only in the US.