The Italian Treasury will give Fiat Chrysler Automobiles (FCA) loan, a record of 6.3 billion euros to the international save the automaker from bankruptcy. It is reported Bloomberg.
The loan will be the largest of all, generated by any of the brands in Europe since the beginning of the pandemic COVID-19. Funding will be focused solely on Italian division of Fiat Chrysler. Funds will be used to pay employees, vendors, and planned investments in the national branch.
In Italy the supply chain of the industry includes 200 thousand small and medium enterprises. National automobile industry brings in over 100 billion Euro in annual revenue. In the first quarter FCA has lost 5.5 billion euros.
In may, the Italian-American company and French carmaker PSA Group (owner of Peugeot, Citroen, Opel) refused to issue 1.1 billion euros in the form of dividends stipulated in the agreement of merger. It was signed at the end of December 2019. If the terms of the merger will be agreed to, the new company will become the fourth largest automaker in the world.
The pandemic coronavirus, which has had a paralysing effect on the global economy and has brought down demand for cars, autotrail suffers large losses. To stay afloat, the massive cuts announced many global corporations, including Daimler, BMW and Renault.
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