Currently reading: Report: Fiat Chrysler secures £5.7bn loan from Italian government
Reuters reports that Italy has approved a three-year state-backed credit facility in the wake of the pandemic
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2 mins read
24 June 2020

Fiat Chrysler Automobiles (FCA) has secured a €6.3 billion (£5.7bn) credit line backed by the Italian government, Reuters reports. 

Previous reports from mid-May suggested FCA was attempting to secure a share of the government's coronavirus emergency financing scheme. Reuters says the court's approval came following an endorsement from the economy ministry and the loan will be issued by Intesa Sanpaolo, Italy's biggest retail bank. 

The firm, which has its financial headquarters in London, earlier scrapped its dividend payments to shareholders after a planned £7.4bn sale of reinsurer PartnerRe, owned by the holding firm of the Agnelli family alongside the controlling share of FCA, collapsed. 

The PSA Group, which has agreed a tie-up with FCA to create the world’s fourth largest car-making group, also scrapped its dividend for 2020. The decision allowed them to keep just under £1bn for day-to-day operations during the coronavirus crisis.

Italian state investment into FCA has been a controversial issue because the company's holding is registered to the Netherlands. Any conditions imposed upon the loan by the Italian government remain unconfirmed.

Almost every car manufacturer has suffered extensive financial setbacks or share price drops during the pandemic, which caused car registrations during April to fall by 97% in the UK alone. Europe is only now easing out of its lockdown measures and it’s expected the market will gradually return to healthier figures. 

A primary reason for FCA seeking the merger with PSA was to bolster its European arm, which has struggled over the years with poor sales, low margins on mainstream cars and under-funded premium brands such as Maserati and Alfa Romeo. The French group’s expertise in the market, along with its superior progress on electrification, is hoped to help FCA recover its success in the region.

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8

15 May 2020

Wonder if PSA kept the Receipt

16 May 2020
xxxx wrote:

Wonder if PSA kept the Receipt

Hahahahahahahahahahahhahhahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahah...wait, maybe you've got something...nope...hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhah :)

24 June 2020
xxxx wrote:

Wonder if PSA kept the Receipt

You do not  get receipts for mergers

24 June 2020

Government is bailing out Tata steel. JLR will not be far behind. Watch government debt soar!

24 June 2020
TStag wrote:

Government is bailing out Tata steel. JLR will not be far behind. Watch government debt soar!

25 June 2020
All they need to do now is start building cars that people want and offering good deals. The Punto was a huge hit years ago Fiat need to do that again and keep it going or they will end up like ROVER,MG and SAAB. I thought myself the recent Tipo was nice but could have done with a better more modern dash and a bigger touchscreen. Still it makes a good second hand buy. Fiat hopefully will build on the Centrevento concept they had recently and if they do then that could become huge hit.

25 June 2020
All they need to do now is start building cars that people want and offering good deals. The Punto was a huge hit years ago Fiat need to do that again and keep it going or they will end up like ROVER,MG and SAAB. I thought myself the recent Tipo was nice but could have done with a better more modern dash and a bigger touchscreen. Still it makes a good second hand buy. Fiat hopefully will build on the Centrevento concept they had recently and if they do then that could become huge hit.

25 June 2020
All they need to do now is start building cars that people want and offering good deals. The Punto was a huge hit years ago Fiat need to do that again and keep it going or they will end up like ROVER,MG and SAAB. I thought myself the recent Tipo was nice but could have done with a better more modern dash and a bigger touchscreen. Still it makes a good second hand buy. Fiat hopefully will build on the Centrevento concept they had recently and if they do then that could become huge hit.

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