Italy: the State grants a loan of 6.3 billion euros to the automotive group Fiat Chrysler

Fiat's global headquarters in the city of Turin in northern Italy. Reuters / Giorgio Perottino

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In Italy, the Fiat Chrysler automotive group will receive massive state support to overcome the coronavirus crisis. A loan of more than 6 billion euros, but with significant counterparties.

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6.3 billion euros is the amount that the Fiat Chrysler group will benefit from from the State, indicates this Sunday the Italian press while the government has not yet announced anything. The loan, guaranteed 80% by the Italian state, will enable Fiat Chrysler to finance its activities on the peninsula .

According to the Italian daily Sole 24 Ore , the group is committed to investing 5.2 billion in Italy, on ongoing projects or to build new ones.

Read: Coronavirus: the global automotive industry in free fall

If the Italian State has this requirement, it is because it wants to ensure that this aid is used to finance activity in Italy, and not in the Netherlands or the United States, where the headquarters are located and part of the builder's activities. Fiat Chrysler directly employs 55,000 people on the peninsula. None of these positions can be eliminated in the next three years.

More than a billion euros will still be allocated to some 1,400 foreign suppliers to the automotive group, according to the Italian daily, which specifies that in the event of non-compliance with the counterparts set by the government, the automotive group will exposes to sanctions of around 500 million euros.

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  • Economy
  • Italy
  • Automobile

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