Fiat Chrysler in discussion to obtain a 6.3 billion euro state-guaranteed loan

Fiat Chrysler Automobiles is in talks with Italian bank Intesa Sanpaolo for a state-guaranteed loan of 6.3 billion euros to help it overcome the crisis caused by the pandemic of coronavirus, as reported by Reuters.

The loan, as part of the cash support measures put in place by the Italian government, must be approved by the board of directors of Intesa Sanpaolo, added this source.

If the loan request is approved by the bank, it will then be studied by SACE, the Italian export credit agency through which the Italian state provided its guarantee, and then by the Treasury.

No comments could be obtained immediately from the parties involved in this case, revealed on Friday by the business daily MF.

Fiat Chrysler, which has planned to merge with PSA, began in late April the gradual restart of its activity in Italy but the containment practically wiped out vehicle sales and led the manufacturer to largely reduce its cash to cover its costs.

Fiat Chrysler and PSA announced in a joint press release Wednesday that they will not pay dividends to their shareholders due to the effects of the pandemic and have confirmed that preparations for their 50/50 merger plan are expected to yield birth by the end of the first half of 2021 into the fourth world automobile group.

The cancellation of the payment of dividends is part of the conditions set by the Italian public authorities in order to be able to access the support systems.

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