Maxi FCA loan, Sace conditions: full employment, no relocations

Here are the conditions for FCA to obtain the 6.3 billion euro maxi loan, 80% guaranteed by Sace: 5.2 billion investments in Italy (200 million more for Melfi than the original programs of the group chaired by John Elkann), relocations to avoid and full employment until 2023. Furthermore, no detachment of the dividend in 2020. Here are the commitments identified by Sace at the end of the investigation which will now be included in the loan agreement with Intesa Sanpaolo. Commitments that will now be enshrined in a decree of the Ministry of Economy, as part of the task force envisaged for this type of aid to businesses, together with the Ministry of Economic Development and SACE.

However, there will be no restrictions on FCA – which is in the pipeline for the maxi-merger with the French PSA by the first quarter of 2021, as confirmed by the two companies – to detach the extraordinary coupon in 2021 from 5.5 billion euros linked to the merger with Psa, insofar as it is compatible with the norm of Growth Italy, as Il Sole 24 Ore writes on Sunday.

The Sace guarantee will support 80% of the 6.3 billion loan granted by Intesa Sanpaolo to FCA Italy spa and to the other FCA group companies with registered offices in Italy. The aim is to protect the supply chain in Italy. The estimate that 800 million of the loan is destined to the personnel costs of the Italian plants, 4.5 billion to the working capital, including the payment of the supply chain which includes about 10 thousand suppliers (of which for 1,400 foreigners and for whom a roof is considered € 1.2 billion), around € 1 billion for research and development.

The Sun also highlights that there is a commitment not to move the production of vehicles covered by almost all the industrial projects envisaged (8 out of 10) and for updates to the versions of the models abroad. Then there is the commitment not to sell the Maserati, Alfa Romeo, Fiat, Fiat Professional, Abarth and Lancia brands, in addition to the stake held in Sevel. From a financial point of view, a pre-amortization up to 31 December 2021 and 15 months of repayment in five installments are expected.

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