MILAN (1) – Italian Prime Minister Giuseppe Conte mentioned on Saturday that Fiat Chrysler was entitled to apply for Italy’s state-backed loans as a result of the automaker employs 1000’s of individuals within the nation, though its authorized base is positioned overseas.
FILE PHOTO: A Mirafiori FCA employee walks on the Mirafiori industrial complicated on the 80th birthday of the plant in Turin, Italy July 11, 2019. REUTERS/Massimo Pinca/File Picture
The Italian-American group confirmed on Saturday its Italian unit was working with Rome to acquire state ensures on a 6.3-billion-euro ($6.eight billion) loan facility designed to assist Italy’s automotive trade, comprised of roughly 10,000 small and medium-size companies.
The coronavirus outbreak, which has hit Italy particularly onerous, slammed the brakes on demand for brand spanking new autos and compelled automakers to halt most manufacturing, burning money.
Fiat Chrysler Cars NV (FCA) (FCHA.MI) mentioned in an announcement that talks have been ongoing with lender Intesa Sanpaolo (ISP.MI) for a three-year credit score facility solely devoted to the group’s actions in Italy.
Requested whether or not FCA, which has its authorized headquarters within the Netherlands, may get a loan assured by the Italian authorities, Conte mentioned the group certified.
“We’re not speaking in regards to the mother or father firm, we’re speaking in regards to the group’s firms in Italy, which make use of 1000’s of individuals,” the prime minister mentioned.
FCA runs a number of vegetation and analysis and growth centres in Italy, instantly using round 55,000 folks.
As well as, over 200,000 folks work in Italy’s 5,500 components suppliers and 120,000 folks in automotive sellers and repair firms, with the automotive trade accounting for six.2% of Italy’s home product, FCA mentioned.
Information that FCA was asking the Italian authorities for liquidity assist had raised criticism.
The ruling celebration PD’s deputy president, Andrea Orlando, earlier on Saturday mentioned on Twitter that if an organization requested the Italian authorities for sizeable financing, it had to deliver again its authorized base to Italy.
The scheme is a part of emergency measures the Italian authorities is making accessible to the nation’s companies. It affords greater than 400 billion euros’ value of liquidity and financial institution loans to firms hit by the pandemic.
FCA mentioned the state-backed credit score facility it’s looking for may have “the only function of offering operational assist for funds to Italian suppliers to assist their liquidity and, on the identical, supporting the restart of manufacturing and funding at Italian vegetation.”
The group has regularly restarted operations in Italy because the finish of April.
Reporting by Giulio Piovaccari; extra reporting by Angelo Amante; modifying by Alexandra Hudson and Leslie Adler