Italy provided a multi-billion loan Fiat Chrysler

Italy provided a multi-billion loan Fiat Chrysler

June 24, 2020 0 By autotimesnews

Fiat Chrysler Automobiles requires a multi-billion dollar loan from the Italian government, which should lead the group out of the crisis.

The coronavirus pandemic has catastrophic consequences for the automotive industry and is already leading to job losses, reduced production and government support. For example, Renault is planning a government infusion. Fiat Chrysler can also count on government support. According to Reuters, the Italian government has approved an application for a multi-billion dollar loan. We are talking about three-year financial support in the amount of only 6.3 billion euros. This amount is part of the Italian contingency plan for local businesses.

Fiat Chrysler was hit hard by the crisis, but in his home country of Italy, which is still the main market, sales during the block fell to absolute zero. The fact that assistance comes from Italy seems logical because of the origin of the company and the substantial employment of the local population, but it’s not so simple. In the end, Fiat Chrysler is an Italian-American group that is officially registered in Amsterdam, has non-Italian brands and is on the way to merging with the French group PSA. However, financial support for the group from the United States has not yet been received, and the FCA even had to cut salaries to management in order to save money.