FCA Italy working on activation of credit facility, as provided under the recent Italian Liquidity Decree, to further support...
16 Mai 2020 - 10:46PM
FCA Italy working on activation of credit facility, as
provided under the recent Italian Liquidity Decree, to further
support automotive sector in Italy
·FCA Italy has initiated a process with
the Italian Government to obtain a guarantee from SACE in support
of a credit facility designed to help the automotive chain Italy,
comprised of approximately 10,000 small and medium size businesses.
A dialogue in that respect is ongoing with the first banking group
in Italy, Intesa Sanpaolo.
In relation to recent press speculation, FCA
Italy S.p.A. ("FCA" or "the Company") confirms that it is in talks
with the Italian Government (the Ministry of Economy and Finance -
MEF, and the Ministry of Economic Development - MISE) to obtain a
guarantee from SACE, Italy’s Export Credit Agency (part of the
Italian State’s Cassa Depositi e Prestiti S.p.A. group), under the
recently enacted Liquidity Decree (“Decreto Liquidità”).
Discussions have been initiated with Intesa Sanpaolo, Italy’s
largest banking group, in relation to a 3-year credit facility
dedicated exclusively to financing FCA’s activities in Italy and
intended to provide further support to some 10,000 small and medium
enterprises in the automotive supply chain in Italy following the
reopening of the Company’s Italian plants beginning at the end of
April.
Under an innovative mechanism, initially
applicable to the automotive supply chain, all disbursements from
the credit facility will be managed through dedicated accounts
established with Intesa Sanpaolo for the sole purpose of providing
operational support for payments to Italian suppliers to support
their liquidity and, at the same, supporting the restart of
production and investment at Italian plants. Under the Italian
government’s Liquidity Decree, the total amount of the credit
facility may be equivalent to 25% of the consolidated turnover of
FCA’s industrial entities in Italy, or up to €6.3 billion.
This innovative agreement reaffirms the Italian
automotive sector’s role in the restart of Italian industry, in
relation to which FCA - together with its suppliers and partners –
are pivotal. This position will be further strengthened in coming
years through the extensive investment plan, already presented and
confirmed, as demonstrated by the recent production launches of the
new Fiat 500 electric in Turin and the Jeep Renegade and Jeep
Compass plug-in hybrids in Melfi.
Overall, the automotive sector is a key part of
the Italian industry: and it is both in terms of relevance and
structure. On its own it equates to about 6.2% of the Italian GDP
and in terms of employment to about 7% of the entire manufacturing
sector.
The Italian automotive ecosystem represents one
of the country's recognized strengths worldwide, as well as being
one of the largest areas of specialized industrial and commercial
know-how in Europe. This sector determines the largest investments
in research and innovation in the country, a fundamental basis for
guaranteeing future economic competitiveness in an era
characterized by rapid technological changes.
The new credit facility forms part of FCA’s
broader plan for the safe restart of its Italian operations. This
follows an unprecedented period in which rapid measures were taken
to protect employees, families and communities during the Covid-19
emergency, and which resulted in a complete suspension of FCA’s
industrial and commercial activities in Italy, with the inevitably
dramatic short- and medium-term impact on the entire automotive
ecosystem.
FCA is Italy’s largest industrial group,
directly employing 55,000 people at its 16 plants and 26 dedicated
R&D sites. In addition, over 200,000 further jobs at 5,500
highly-specialized Italian suppliers are directly linked to the
successful continuity of the Company’s operations. A further
120,000 jobs at 12,000 enterprises of all sizes in the distribution
and services sectors also support the Italian automotive industry.
In addition, 40% of the €50 billion in annual revenues generated by
the Italian automotive components sector is driven by supply to
FCA.
The number one priority in FCA’s plan is the
health and safety of its employees. With the support of its union
partners and experts, the Company has established protocols for its
operations that have set a benchmark for a return to the workplace
in Italy. Nevertheless, the reopening of FCA’s plants and of the
sector as a whole will inevitably be gradual. The objective of the
current discussions is to strengthen the financial resilience of
the Italian automotive system as a whole, during an inevitably long
and challenging period of recovery.
Turin, 16 May 2020
For further information:tel.: +39 (011) 00 63088Email:
mediarelations@fcagroup.comwww.fcagroup.com
- FCA Italy working on activation of credit facility, as provided
under the recent Italian Liquidity Decree, to further support
automotive sector in Italy
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