Italy has approved a €6.3 billion loan for carmaker Fiat Chrysler’s (FCA) Italian unit, in a bid to salvage the car industry from the pandemic’s economic aftermath.
Finance Minister Roberto Gualtieri said on Wednesday the Italian government had approved a decree offering state guarantees for the carmaker’s loan.
“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 said.
The loan reportedly includes conditions not to relocate or cut jobs as the firm merges with French rival PSA. Gualtieri said the carmaker would have to meet commitments on investments and jobs, adding 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,” said Pietro Gorlier, FCA’s chief operating officer for Europe, the Middle East and Africa, according to Reuters.
Italy’s top lender Intesa Sanpaolo SpA had previously given the green light for the loan, and will benefit from an 80% state guarantee.