FCA Italy, the wholly owned subsidiary of Fiat Chrysler Automobiles, and other Italian companies in the FCA Group have signed a three year, EUR6.3bn credit facility with Intesa Sanpaolo, Italy’s largest banking group.
FCA said the proceeds would be “dedicated exclusively to FCA’s activities in Italy and to support the more than 10,000 small and medium enterprises that make up the Italian automotive sector”.
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The facility will be guaranteed by FCA NV.
The facility will also be 80% guaranteed by SACE, Italy’s export credit agency, under the Italian government’s liquidity decree (decreto liquidita), as overseen by the Ministry of Economy and Finance – MEF, and the Ministry of Economic Development – MISE.
The funds under the facility will be available on receipt of the SACE guarantee.
Under the facility’s innovative mechanism – which provides a potential model for assistance to other business sectors in Italy – all disbursements from the credit facility will be managed through dedicated accounts opened with Intesa Sanpaolo for the purpose of providing liquidity to FCA business in Italy and to Italian suppliers, supporting the restart of industrial production in Italy and the continuation of key investment projects at the group’s Italian plants and suppliers.
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By GlobalDataFCA said the Italian automotive ecosystem is the largest investor in research and innovation in the country and”fundamental to Italy’s future economic competitiveness in an era characterised by rapid technological change”.
The automotive sector accounts for approximately 6.2% of Italian GDP and some 7% of all manufacturing sector employment.
As part of the Italian automotive sector’s transformation towards a low emission, hybrid/electric-powered and connected future, FCA Italy recently started production of the new Fiat 500 electric in Turin and the Jeep Renegade and Jeep Compass plug-in hybrids in Melfi, while development has been completed and production is due to start on the new Maserati MC20 at Modena.
The Pomigliano plant will be prepared for production of the new Alfa Romeo C-UV, Turin for production of the new Maserati GranTurismo, GranCabrio (available also in electric), the Maserati Ghibli and Levante (including hybrids) and Cassino for production of the Maserati D-UV.
Other initiatives include development of the GSE/MHEV (Mild Hybrid) engine module at Termoli for the Renegade, Compass and 500X produced at Melfi.
In Piedmont, significant investments have been initiated at the former Rivalta plant – for the construction of the Mopar brand’s new parts distribution centre – and at the Mirafiori complex, where FCA is to install solar power production units consisting of photovoltaic panels, a battery assembly centre (battery hub) and has started the vehicle to grid pilot project.
Main production launches will be phased over 2020 and 2021 with all completed by 2022.
FCA said the new credit facility forms part of its broader plan to support the safe restart of its Italian operations.
This follows the unprecedented period in which rapid measures were taken to protect employees, families and communities during the COVID-19 emergency which resulted in a complete suspension of industrial and commercial activities in Italy.
Pietro Gorlier, FCA chief operating officer for the EMEA region said: “Faced with an unprecedented crisis, this is an example of Italy coming together to safeguard a vital industrial ecosystem. The combined strengths of government, our nation’s largest bank and FCA have been put to work to ensure the Italian automotive system as a whole can continue to play its role in the restart of Italy’s economy”.
“[All] of the money this facility provides will be directed to our Italian business and so to the thousands of companies and hundreds of thousands of workers who depend on the successful relaunch of our entire sector as we continue a transformative shift to a new electric and hybrid powered future.”
Earlier report: Italy set to approve FCA loan
