Fiat Chrysler asked Rome for a three-year state-backed loan for its Italian operations: union

MILAN (Reuters) – Fiat Chrysler (FCA) (FCHA.MI) has asked the Italian government for a state-backed three-year loan, to help the automaker pay suppliers and continue its investment plan in the country, UILM union said on Saturday.

FCA confirmed to UILM that it had asked Rome for a loan to be paid back in three years, UILM leaders Rocco Palombella and Gianluca Ficco said in a statement.

“FCA’s request is for a loan addressed exclusively to the Italian part of the group and would be aimed at feeding the numerous suppliers, as well as facilitating a 5 billion euro investment plan for our country, in a context of substantial lack of sales and therefore of turnover,” they said.

The automaker is in talks with Intesa Sanpaolo (ISP.MI) over a 6.3 billion euro ($6.8 billion) loan backed by the Italian government to help the automaker weather the coronavirus crisis, two sources close to the matter said on Friday.

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