Stellantis on Thursday said it would suspend production of the fully electric Fiat 500 for four weeks due to slow demand.

"The measure is necessary due to the current lack of orders linked to the deep difficulties experienced in the European electric (car) market by all producers, particularly the European ones," Stellantis said in a statement cited by Reuters.

The 500 is made in Turin at Fiat's historic Mirafiori plant.

The suspension of production would start on Friday, Stellantis said, adding it was "working hard to manage at its best this hard phase of transition".

Reuters noted Italy earlier this year launched a US$1bn plan helping drivers switch to cleaner vehicles, with subsidies for purchases of fully electric cars but government and carmaker have been at odds over the approach to incentives.