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Bloomberg
Fiat Chrysler Automobiles NV is in talks to obtain a state-backed credit line of about 6.3 billion euros ($6.8 billion) to buttress the carmaker’s finances against the steep downturn caused by the coronavirus, according to people familiar with the matter.
Fiat’s local unit is discussing the facility with lead lender Intesa Sanpaolo SpA, the people said, asking not to be named because the matter is private. Sace SpA, Italy’s trade-credit insurer, will provide a public guarantee for 80% of the amount, they said. The guarantee would need to be granted by a decree of the Finance Ministry, the people added.
The Italian-American carmaker is seeking to shore up liquidity after burning through $5.5 billion in the first quarter while its North American plants were shuttered and new-car demand stalled. Fiat Chrysler and French peer PSA Group decided earlier this week to scrap the 1.1 billion-euro dividends that each agreed to pay as part of their merger agreement, citing negative impact of coronavirus.
Italy, hard hit by the virus outbreak, is trying to prop up its battered economy with a second stimulus package worth 55 billion euros.
Prime Minister Giuseppe Conte’s government this week approved measures focused on liquidity for businesses and aid to families hurt by over two months of a nationwide lockdown.