High Taxes are Killing the Combustion Engine

Abarth has been modifying gasoline-fueled Fiats for decades, but that era is sadly coming to an end. The Italian niche brand says it’s effectively finished launching new cars that have a combustion engine. It’s a forced decision given the higher taxes that an increasing number of customers in Europe must pay for cars with combustion engines.

Speaking with Autocar magazine, the Head of Fiat and Abarth Europe, Gaetano Thorel, explained the reasoning behind such a drastic measure. He noted that at home in Italy, a hot hatch that spits out 180 g/km of CO₂ incurs an annual road tax of €1,000 to €2,000 for its owner. In contrast, a fully electric equivalent not only avoids this tax but also delivers comparable performance without compromises. Well, at least according to the boss.

Abarth’s conclusion? “I think it’s better to offer electric cars.” Consequently, only fully electric performance models will be launched in the future. Although the latest-generation 500 city car will get a hybrid version in 2026, it won’t be upgraded by the in-house performance branch. Abarth isn’t doing amped-up versions of hybrids, calling the technology compromised. Since the new 500 Hybrid will have a tiny gas engine, Abarth would have a hard time extracting more power that would be enough to warrant the Scorpion badge.

A dedicated model is not on the agenda either as Thorel explains Abarth has always been about upgrading existing cars. After the launch of the sportier 500e and 600e derivatives, the third hot EV is likely to be based on a large Panda-badged model coming in 2027 to slot above the recently launched Grande Panda.

Stellantis CEO Carlos Tavares recently stated that the struggling brands within the automotive conglomerate have only a few years to save themselves. While he didn’t specifically mention Abarth or any other companies, he indicated that significant decisions would be made within the next 2-3 years. In the meantime, Maserati, Lancia, and other marques are fully funded through 2026. In theory, that means that no brands will be discontinued or sold before 2027 at the earliest.