Deals

Fiat in Talks Over $6.8 Billion Italian State-Backed Loan

Credit line is biggest for a European carmaker since pandemic
Funds will to be used to pay suppliers, support reopening

An employee works on an Alfa Romeo Giulia automobile on the production line at Fiat Chrysler Automobiles NV's Alfa Romeo assembly plant in Cassino, Italy.Photographer: Matthew Lloyd/Bloomberg

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By Daniele Lepido

May 16, 2020 at 6:47 PM UTC

Updated on

May 18, 2020 at 8:00 AM UTC

This article is for subscribers only.

Fiat Chrysler Automobiles NV and Italy’s Intesa Sanpaolo SpA are negotiating a state-backed credit line of as much as 6.3 billion euros ($6.8 billion) in Europe’s biggest government-guaranteed financing for a carmaker since the coronavirus pandemic.

Italy’s top lender would lead a three-year loan facility to help finance the manufacturer’s business in the country, Fiat Chrysler said in a statement. Sace SpA, Italy’s trade-credit insurer, will guarantee 80% of the amount in a mechanism that would need approval by the Finance Ministry. Bloomberg reported the talks on Friday.