A rare hybrid with a stick shift
Fiat is doing something unusual: pairing a hybrid powertrain with a six-speed manual transmission. Official teaser images of the upcoming 500 Hybrid show a slick black shifter inside the familiar retro-styled cabin. The transmission is expected to be connected to a 1.0-liter three-cylinder mild-hybrid engine, likely borrowed from the Fiat Pandina.
That engine only makes around 69 horsepower — similar to the previous gas-powered 500 that went off sale last year — but the appeal here isn’t outright speed. That appeal rests within the 500’s charm, efficiency, and affordability. Fiat’s goal isn’t to build a hot hatch; it’s to bring back an accessible, gas-powered option for buyers who found the electric 500e either too expensive or too limiting.
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An EV gets re-engineered for combustion
Ironically, Fiat had to reverse-engineer this version of the 500. The 500 Hybrid is based on the same architecture as the 500e, which was initially developed to be electric-only, but after the 500e failed to gain traction in Europe, Fiat was forced to rethink its approach.
Slow sales and repeated production pauses signaled that the brand needed to meet buyers where they were, particularly those not yet ready to go full EV. That meant redesigning parts of the EV’s platform to accommodate a small engine and the cooling systems that come with it. The only major visual change is a functional front grille added for the hybrid’s cooling needs. Otherwise, the car retains its clean, electric-era styling.
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Why Fiat made the change
Fiat CEO Olivier François summed it up clearly: “500 Hybrid offers affordable electrification and iconic style, proof that social relevance is at the core of the brand mission.” Translation: the 500e’s pricing and EV-only setup weren’t aligned with its traditionally budget-conscious buyers, and the new hybrid version is meant to fix that.
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The move also helps Fiat stay competitive in a segment that still values manual transmissions, particularly in European markets, where drivers are more accustomed to shifting gears themselves. The brand hopes that this blend of modern tech and old-school feel will help bring customers back.
Final thoughts
For now, the 500 Hybrid is a Europe-only affair. That may frustrate American fans of small, engaging city cars, especially after the 500e finally arrived in the U.S. in 2024. There’s been no announcement of a stateside release for the hybrid, but given the buzz it’s generating, Fiat could reconsider.
Meanwhile, the Abarth performance version of the 500 will remain EV-only. Fiat says the hybrid engine simply doesn’t deliver enough power for the Scorpion-badged hot hatch. Still, the regular 500 Hybrid seems to have struck a balance between nostalgia and necessity, one that might just be what Fiat needed all along.