Turin, Italy – Italy’s government is guaranteeing 80% of a new $7.1 billion credit facility for Fiat Chrysler Automobiles’ (FCA’s) Italian operations, providing liquidity as the automaker deals with the global COVID-19 pandemic.
Intesa Sanpaolo, the country’s largest banking group, will provide the 3-year credit line which will only support Italian operations. Italy’s Ministry of Economic Finance (MEF) and Ministry of Economic Development (MISE) will oversee the loan program.
FCA’s European Regional Chief Operating Officer Pietro Gorlier 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 Fiat Chrysler Automobiles 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. 100% 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.”
Italy’s automotive ecosystem is the largest investor in research and innovation in the country and, as such, fundamental to Italy’s future economic competitiveness in an era characterized by rapid technological change. The automotive sector accounts for approximately 6.2% of Italian GDP and some 7% of all manufacturing sector employment.
FCA Italy and Italian supplier companies have confirmed their commitment to implement their extensive investment plan for Italy, most of which has already been initiated.
As part of that plan, FCA Italy recently started production of the Fiat 500 electric in Turin and the Jeep Renegade and Jeep Compass plug-in hybrids in Melfi.
New initiatives include development of the new GSE/MHEV (Mild Hybrid) engine module at Termoli, which will equip the Jeep Renegade, Jeep Compass and Fiat 500X produced at Melfi.
Production launches will be phased throughout 2020 and 2021, with all launches completed by 2022. This ambitious plan covers the product offering for all brands and manufacturing sites in Italy, including significant upgrades for powertrains.