To save the popular car, Fiat proposes to “brake” the maximum speed of vehicles; understand

In addition to the reduced speed, the brand defends the creation of a new category in Europe with simplified safety requirements

Cars such as Fiat 500e and Panda may suffer limitations in speed and greater investment in safety (Photo: Fiat | Disclosure)
By Júlia Haddad
Published on 2026-01-14 at 07:00 PM

Fiat is studying electronically limiting the maximum speed of its city cars to 117 km/h. The proposal, defended by the brand’s CEO, Olivier François, is not only aimed at safety, but mainly at economic viability: the measure would make it possible to dispense with expensive technologies required by the European Union, keeping the price of vehicles affordable.

The executive argues that the bloc’s recent safety regulations require advanced assistance systems (ADAS) designed to prevent accidents at high speeds. For strictly urban models, such as the Fiat 500 and the Panda family, François considers that the mandatory nature of this equipment makes the final product more expensive without bringing real practical benefit to the driver.

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“The installation of this technology compromises the cost-benefit equation for the consumer”, evaluates the automaker. Fiat’s strategy is to foster the creation of a new regulatory category in Europe, the “M1E”. This classification would allow light vehicles to have simplified safety requirements in exchange for speed limitation, saving the entry-level segment from extinction due to high costs.

In practice, the change would have little impact on usability. The new electric Big Panda, for example, is already limited to 132 km/h. Lowering that ceiling to 117 km/h is seen as acceptable for cars that rarely frequent high-speed highways.

If the proposal goes ahead, Fiat will adopt a more radical stance than Volvo. In 2020, the Swedish brand limited all its models to 180 km/h, focusing exclusively on reducing fatal accidents. The Italian’s maneuver, in turn, is an attempt at the commercial survival of compacts in a scenario of strict regulation.

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