Fiat has faced a challenging road with the 500e, its all-electric small hatchback, as persistently low demand forced the company to halt production several times. Recognizing that interest in the EV version wasn't rebounding, the automaker made a strategic shift last year, announcing that it would reintroduce a gasoline-powered variant of the 500. This decision marks a significant pivot in Fiat’s approach to keep the iconic model alive in a changing market. Production of this new gas-powered version is already underway at the Mirafiori plant in Turin, Italy, where pre-production models are currently being assembled. Full-scale production of customer vehicles is set to begin in November, with Fiat projecting that around 5,000 units will be produced before the year concludes.
Fiat CEO Olivier Francois refers to the reengineered 500 as “the 500 for real people, the pragmatic 500,” suggesting that this new version is designed with affordability and practicality in mind. In Italy, the gasoline-powered 500 will start at €17,000—approximately €5,000 less than the electric version. Although this price point may not seem like a bargain at first glance, it's important to consider that the price includes Italy’s 22% value-added tax (VAT). Like its electric counterpart, the new combustion version will be offered in three body styles: the standard hatchback, an open-top convertible, and the distinctive 3+1 model, which features a small rear-hinged door on the passenger side for easier access.
Despite being built on a platform initially designed for electric propulsion, the gas-powered 500 will be equipped with a modest 1.0-liter three-cylinder mild-hybrid engine producing 70 horsepower. This engine isn’t new—it’s borrowed from the previous-generation 500 and the long-running Fiat Panda, which has been on sale since 2011. The drivetrain will include a six-speed manual transmission, with no automatic option announced thus far.
Although complete technical details are still forthcoming, one logical assumption is that the absence of heavy battery packs will result in a lighter vehicle overall. For context, the 500e with a 24-kWh battery weighs approximately 1,255 kg, and with the larger 42-kWh battery, it reaches about 1,340 kg. The gasoline version will likely be considerably lighter. Aesthetically, the gas and electric versions are nearly indistinguishable, save for a horizontal grille slat added to the front for engine cooling.
The introduction of the 500 Hybrid comes at a complicated moment for Fiat’s parent company, Stellantis, which is under pressure to comply with strict European Union emissions regulations by 2027. Ironically, if the gasoline model sells too well, it could raise Fiat’s average CO₂ emissions, potentially triggering regulatory penalties. To counterbalance this risk, Stellantis will need to increase its electric vehicle sales.
Fiat’s move to add the gasoline version also reflects its broader aim to revitalize the underused Mirafiori factory, which has the capacity to produce 100,000 cars annually but managed just 25,000 units last year. To maximize efficiency, both the gasoline and electric versions of the 500 will now be manufactured at the same facility. Meanwhile, Fiat’s performance brand, Abarth, is stepping away from internal combustion engines due to high European taxes on high-emission vehicles. As a result, enthusiasts shouldn’t expect a gas-powered hot hatch 500. Instead, Abarth is focusing on electric options, including the sportier 500e and the new 600e crossover.