Can Fiat win over the hearts of Americans with its new, better 500e?
To be frank, Americans don’t buy Fiats. The brand sold only a few hundred cars in the US last year. But Fiat hopes to – finally – charm the US with the “immersive Italian experience” of its upcoming Fiat 500e – Stellantis’s first all-electric car in the US. Unlike many of those hulking SUVs we’re seeing, this sweet retro-styled city car is one of the lightest and cheapest EVs on the market. To set la dolce vita vibes, the car even comes with its own theme music.
But for the record, Fiat had a truly terrible year in 2023, selling practically no cars in the US – a grand total of 605 cars. It sold so few cars in the US that it is now discontinuing the few models it had on offer and going on all in on the 500e, according to a report in Jalopnik.
Already available in Europe, the 2024 500e EV, available for order, will go on sale in the US in the initial RED trim the first quarter of this year. It starts at a reasonable $32,500 plus a $1,595 destination fee, although it’s not eligible for the $7,500 federal tax credit. The 2024 version is made in the Mirafiori factory in Turin, Italy, compared to the 2019 built in Mexico.
The new 500e keeps the cute, retro style of the previous generation but refreshes and modernized the exterior and interior. The two-door hatchback comes powered by a 118-hp electric motor for a 149-mile range – not amazing but good enough for most trips and daily use. The battery comes with DC charging at up to 85 kW, which adds enough juice for 31 extra miles of range in just five minutes, according to Fiat. Weight-wise, Fiat calls its EV the “lightest passenger BEV in the market” at just over 3,000 pounds (1,361 kg).
Inside, the car has a less plasticky look than the earlier version and a 10.3-inch touchscreen infotainment system with the Uconnect 5 software interface.
But it truly sets the mood, Italian-style, with its Acoustic Vehicle Alert System. The low-speed audio warning, which is standard in EVs, plays an Italian classical tune dubbed “The sound of 500,” written by Flavio Ibba and Marco Gualdi. The idea, says Fiat, is to create Italian vibes every time you step into the car.
Electrek’s Take
Fiat has been around in North America for more than a hundred years, but things never really took off in the states. While a bestseller in Europe, lackluster sales in the US fueled a difficult, on-again/off-again relationship. Fiat brought its 500 to the US in 2011 (which was discontinued in 2019), and the 500e EV to California in 2013. A new 500 came to Europe in 2022, with no news on American sales until late 2022, when the brand announced its 2024 500e would arrive in the states.
Even in Europe, Fiat had a rough year too, producing 77,000 500e cars against the more than 90,000 forecast at the beginning of 2023, according to Automotive News Europe. Of course, its home turf of Italy has some of the lowest EV adoption rates in Europe, at just 4% of the market.
Plus the 500e too has plenty of competition from other EVs with a lot more space and longer driving ranges. Still, despite this, the brand is betting that it can win over some customers with its awesome design and Italian charm. And honestly, this is exactly the kind of car that any city dweller or suburbanite would need for quick trips and short day trips. It’s small, affordable, and the perfect antidote to the SUV and truck bloat we’re seeing coming out this year. Perhaps too, as a longtime resident in Europe, I have long had a soft spot for the brand, but this type of vehicle makes a ton of sense for a lot of people: zero emissions, easy to park, and is less of a hazard to pedestrians and cyclists.
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Environment
Toyota the EV battery supplier? Honda will use them to power up its 400,000 hybrids in the US
Toyota is now a battery supplier? That’s the plan. Honda will use Toyota’s batteries to power up its around 400,000 hybrids sold in the US.
Toyota will supply batteries for Honda hybrids in the US
Toyota’s $14 billion battery plant in North Carolina is ready for business. The facility will begin shipping out batteries next month, and it looks like Toyota already has its first customer.
According to a new Nikkei report, starting in fiscal 2025, Toyota will supply batteries for the roughly 400,000 Honda hybrids sold in the US.
Honda currently uses batteries from China and Japan for vehicles sold in the US, but the company is (like most) preparing for changes under Trump.
Honda’s electrified vehicles, including EVs and hybrids, accounted for over a quarter of US sales last year. The company sold over 308,500 hybrids and 40,400 electric vehicles in the US in 2024. The batteries will likely be used in the CR-V and other Honda hybrid vehicles.
Earlier this month, an extra 10% tariff on imports from China took effect. And that’s on top of the 10% imposed in February.
With more expected, including a 25% increase in vehicles imported from Japan, automakers are tightening up their supply chains.
A 25% tariff on Japanese vehicles, up from 2.5% currently, is estimated to cost the six major Japanese automakers about $20 billion in the US.
Tariffs on imports from Mexico and Canada could cost Honda roughly $4.7 billion alone. Teaming up with Toyota to use its batteries for its hybrids is part of Japan’s broader global plans to ween off dependence on China and others for batteries and other emerging tech.
The new US plant, Toyota Battery Manufacturing North Carolina (TBMC), is over seven million square feet, or about the size of 121 football fields.
As Toyota’s first in-house battery factory outside of Japan, the plant could be a game changer as Trump’s tariffs take effect. Securing Honda as a buyer will already help Toyota cut costs as it ramps up output.
Toyota plans to ramp up electrified vehicle (EV, PHEV, and hybrid) sales in North America from around 40% last year to 80% by 2030.
Electrek’s Take
Trump’s tariffs are already causing havoc, with nearly every automaker warning that they put the US further behind. Overseas automakers are not the only ones feeling the heat, either.
The “Big Three,” GM, Ford, and Jeep maker Stellantis all build vehicles in Canada and Mexico. GM cut output at its plant in Mexico in January, where the electric Chevy Equinox, Blazer, and Honda Prologue are made. Stellantis halted operations at its Brampton Assembly Plant in Canada last month, where it was expected to launch the Jeep Compass EV production. What’s next?
For Toyota, it looks like its $14 billion bet to build batteries in the US is already paying off. Now, we just need it to introduce more EVs.
After unveiling three new electric SUVs in Europe last week, including the updated bZ4X, Toyota hinted more is on the way for the US. Check back soon for updates.
What do you think? Do you want to see more Toyota EVs in the US, like the new C-HR+? Let us know your thoughts in the comments.
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Environment
If Musk wants to sell Tesla cars to conservatives, Tesla needs stores and service in red states
Elon Musk wants to sell Tesla cars to conservatives, but if that’s the strategy, the automaker should start with having stores and service centers in red states and rural areas.
It’s no secret that Elon Musk’s approval ratings with progressives have been plummeting over the last few years and even more so in the previous few months.
Since he has control over Tesla and he is the only official spokesperson since he let go of the PR department in 2020, the CEO is dragging the automaker along for the ride.
This is a problem for Tesla as Democrats are much more likely to buy electric vehicles than Republicans:
Tesla’s sales have been crumbling over the last few months, and after the stock crashed 15% last Monday, President Trump held a controversial commercial for Tesla with Musk on the steps of the White House on Tuesday.
A day later, it was reported that Musk plans to give Trump another $100 million in political donations.
It was an apparent attempt to try to promote Tesla to Trump’s fans: conservatives.
Based on a Tesla inventory check and new order delivery timeline, we reported that the Trump ad appeared to have little to no impact on the demand for Tesla vehicles.
It could be that people see through Musk and Trump’s quid pro quo and, therefore, don’t value Trump’s “Tessler” endorsement seriously. Still, there’s also a more practical reason why Trump’s fans and conservatives generally don’t buy more Tesla vehicles: the locations of Tesla’s stores and service centers (hat tip to Ben).
Even if some Trump fans were interested in buying a Tesla after the White House commercial last week, they might have been turned off by the idea of having to drive several hours to a store or service center.
Tesla does not have stores or service centers in Alabama, Arkansas, North and South Dakota, Kansas, Montana, Nebraska, or Wyoming.
In some cases, it’s not entirely Tesla’s fault, as some of these states have laws against Tesla’s direct sale models. They force automakers to go through third-party franchise dealerships. This is an abuse of old state laws aimed at protecting dealers against unfair competition from the automakers they represent.
Car dealer lobbies use their influence on state legislatures to use these laws to block Tesla, Rivian, Lucid, and other automakers who never had franchise dealerships from operating their own stores and service centers.
But on top of not having locations in several red states, Tesla also primarily has locations in urban areas, whereas conservatives disproportionally live in rural areas.
The automaker has several dead zones and doesn’t operate locations in smaller cities and towns where there are several Ford, GM, Toyota, and other car dealers:
While it certainly does happen, it’s hard to convince someone to buy a car if they have to drive several hours to pick it up and have it serviced.
Electrek’s Take
In short, it’s not only harder to convince conservatives, on average, to buy an electric vehicle, but Tesla is also not correctly set up to sell and service cars in conservative regions of the US.
Though, I think that’s a small part of the problem.
Cars are not supposed to be political.
Even if Tesla successfully converted a significant percentage of conservatives to electric vehicles, it wouldn’t stop the company’s brand destruction.
Tesla’s reputation amongst Democrats and independents has sharply decreased over the last few years, and especially over the last few months, and that’s thanks to Elon Musk alienating them.
It’s tough to be a successful consumer product company when you have alienated 50% or so of your market.
Tesla is basically becoming the MyPillow of Trump’s second term.
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