√Fiat bets big on small electric cars

The Ford Fiesta is gone and the Volkswagen Polo is in doubt, but Fiat says it’s committed to the city-car class.

Its competitors may be abandoning small cars for more popular – and more profitable – SUVs, but Italian brand Fiat plans to bet big on the small-car segment with a wide range of electric vehicles.

Fiat boss Oliver François has told UK publication Autocar the company was committed to developing its next generation of city cars.

“What we are super-focused at doing is [micro cars, small cars, and medium-sized cars] but with the right engine, body and technology,” Mr François told Autocar.

“The stuff the customer will really crave for in that moment. So small cars, but with a smart package.”

The global president of Fiat acknowledged Ford’s decision to axe the Fiesta and suggested the Volkswagen Polo’s days could be numbered – despite VW executives insisting no decision had been made on the car’s future.

“The fact that there is no Fiesta in the way or Polo in the way is just fantastic, because it is really where we belong. It’s where people expect us to be. We have not done a new Punto since 2013 or something like that, but if you ask European customers to name their top [small car] brands, Fiat is in the top three,” Mr François told Autocar.

MORE: 2023 Abarth 500e electric hot hatch revealed, due in Australia next year

“We need to own the [small car segment] again, and we need to keep owning the [micro car segment]. We know why the others are leaving, and I understand: it is more challenging.”

Fiat’s Australian division says the 500e electric car is due on sale here in 2023. It is expected to cost between $35,000 and $50,000 – depending on battery capacity, electric motor output, and trim specifications.

“The only super-profitable, easy way to go electric is to make it super-premium, because you embed the horribly high cost of batteries into something that is anyway expensive.”

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