Stellantis Plans Return of Affordable Electric Cars for Europe
European automakers started with small and extremely affordable cars, such as the original Citroen 2CV and Fiat Panda. Now Stellantis is ready to repeat this path by launching a line of compact electric vehicles, with production set to begin in 2028.
This week, Stellantis announced a new initiative called E-Car, which entails creating a series of small electric vehicles under various brands. Production will take place at the company’s plant in Pomigliano, Italy. This facility has a long history of producing budget-friendly Fiat models and currently manufactures the Alfa Romeo Tonale and the base Panda.
New EU Rules as a Catalyst
The automaker notes that the new project will focus on compact electric vehicles designed specifically for European cities, short trips, and buyers who have effectively lost the ability to purchase a new car due to rising prices. The affordability problem has become extremely acute in Europe. Average car prices have risen significantly, as has the average age of cars on the roads, while truly cheap new cars have almost disappeared from the market.
A significant push has come from new European Commission rules, which created the M1E category for small electric vehicles up to 4200 mm in length. This can be considered a European analogue of the Japanese “kei car” concept, but with electric motors instead of small turbocharged engines. The proposed system, according to reports, gives manufacturers more flexibility and long-term regulatory certainty, making the business model significantly less risky.
A Smaller Panda and the Revival of Legends
Stellantis has not yet confirmed which specific models will appear first, but the hints are quite transparent. The company particularly emphasized the history of the Pomigliano plant, where iconic affordable cars like the Fiat Panda were produced. Recent reports indicate that a smaller and cheaper Panda will appear, inspired by the original 1980s model, which will be positioned below the new Grande Panda. Citroen also seems eager to revive the spirit of the legendary 2CV by creating a simple and practical electric car that will be cheaper than the C3.
Recent reports suggest that the new plan of Stellantis CEO Antonio Filosa involves focusing core efforts on four of the company’s more than a dozen brands. Fiat is one of them, along with Jeep, Ram, and Peugeot. Other brands will use the cars and technologies of these four core marques.
Fiat and Citroen as Key Players
Thus, Stellantis is betting on the revival of historical names to bring truly affordable electric cars back to the market. The use of the Pomigliano plant, which has experience in mass-producing budget cars, along with new European regulations, creates favorable conditions for this. If the company’s plans come to fruition, European buyers looking for an inexpensive and practical electric city car may get modern descendants of the legendary Panda and 2CV. This could be an important step in the democratization of electric vehicles and addressing the problem of the growing unaffordability of new cars in the region. At the same time, the question remains whether these new models will be able to retain the same spirit of simplicity and functionality that made their predecessors so beloved, and whether Stellantis can avoid compromises in quality to achieve a low price.