Alexandre
The electric Fiat 500 has been going through a period on the European market since the beginning of 2024. After a significant drop in sales, Stellantis announced in-house production of batteries for the 500 electric vehicle by 2026. If this decision is The aim is to improve the car's range and reduce battery costs, it further jeopardizes the future of its current supplier, Samsung SDI's plant in Göd, Hungary.
The crisis at Samsung SDI's Göd plant is nothing new. According to information gathered by local media telex, production has fallen to an alarming level, operating at just 30 to 40 % of capacity by the end of 2024. This slowdown led to a total shutdown of production for three weeks in December, marking a turning point in the activity of the plant, one of Europe's largest manufacturers of batteries for electric vehicles. The situation is all the more worrying when you consider that, a year ago, the plant was producing 16 million battery cells a month. Today, demand has fallen to such an extent that production capacity has been drastically reduced, with output not exceeding 60 % of total capacity in 2024.
The drop in sales of the electric Fiat 500 is not without consequences for Samsung SDI, which supplies batteries for Fiat's flagship model. After a phase of strong growth in the electric vehicle market, enthusiasm seems to have waned. Changes in tax incentives and the end of government subsidies for electric vehicles in Europe have contributed to a slowdown in demand. In particular, the electric Fiat 500, which had established itself as a relatively popular model with over 65,000 units per year, saw its sales halve in 2024 in the face of increased competition and a relatively high price compared with other electric models.
Stellantis' decision to internalize battery production for the Fiat 500 from 2026 onwards in its new Spanish plant could spell the end for the Göd plant. This announcement comes at a time when Samsung SDI is already struggling to maintain profitable production levels.
In addition, rumors reported by the telex media are circulating that Samsung SDI may close some of its production lines or even further reduce its workforce in response to falling demand. During 2024, the contracts of over 2,000 temporary workers were not renewed, and internal tensions at the Göd plant continued to grow, marked by the departure of several Hungarian executives.
Inaugurated in 2017, this Samsung SDI plant in Hungary, which was once one of the main battery suppliers for giants such as BMW, Stellantis and Hyundai, is now facing major difficulties of its own. Although the Hungarian government continues to support the plant with subsidies and tax exemptions, and the European Union with a grant of 89.6 million euros in 2023, the situation remains tense. The plant expansion project, which would have enabled the construction of a third production site, has now been put on hold. If the situation continues to deteriorate, Samsung may be forced to review its investment plans and further reduce its operations in Hungary.
Source telex