Italy has permitted a €6.three billion mortgage for carmaker Fiat Chrysler’s (FCA) Italian unit, in a bid to salvage the automobile business from the pandemic’s financial aftermath.
Finance Minister Roberto Gualtieri mentioned on Wednesday the Italian authorities had permitted a decree providing state ensures for the carmaker’s mortgage.
“It is a systemic operation which aims to preserve and strengthen the Italian automotive supply chain and to relaunch investments, innovation and employment in a strategic sector,” the Italian Finance Minister mentioned.
The mortgage reportedly consists of situations to not relocate or reduce jobs because the agency merges with French rival PSA. Gualtieri mentioned the carmaker must meet commitments on investments and jobs, including that the move is “an operation that aims to preserve and reinforce the Italian auto industry”.
“100% of the money this facility provides will be directed to our Italian business … as we continue a transformative shift to a new electric and hybrid powered future,” mentioned Pietro Gorlier, FCA’s chief working officer for Europe, the Middle East and Africa, in line with Reuters.
Italy’s prime lender Intesa Sanpaolo SpA had beforehand given the inexperienced gentle for the mortgage, and can profit from an 80% state assure.