Italy grants $7.1 billion loan to Fiat Chrysler

Italy’s Treasury announced on Wednesday the state’s approval to a 6.3 billion euro ($7.1 billion) loan to Fiat Chrysler, directed to its unit in Italy. This is the largest crisis loan granted to any auto firm to date.

The announcement followed an endorsement by the Italian audit court, ending the long approval procedure for the loan. Economy Minister Roberto Gualtieri said that the state aims to preserve and strengthen the country’s automotive supply chain.

Fiat Chrysler’s Italian unit has availed of the state’s COVID-19 emergency financing schemes in order to get a government-backed, three-year facility to cushion financial setbacks brought by the coronavirus pandemic.

The automobile firm’s request for state support was lashed out by many as Fiat Chrysler was known to be merging with its French competitor PSA and the holding company for the Italian-American carmaker is officially registered in the Netherlands.