Italian-American Automaker FCA Posts Net Losses Of One Billion Euros In Q2

 Fiat Chrysler Automobiles FCA

ROME, Aug 1 (NNN-AGENCIES) – Italian-American automaker, Fiat Chrysler Automobiles (FCA), posted net losses of one billion euros (1.18 billion U.S. dollars), in the second quarter (Q2) this year, the company said, yesterday.

FCA said, it shipped 424,000 vehicles worldwide in Q2, down by 63 percent, compared to the same period last year, due to COVID-19 pandemic-related production stoppages and demand disruptions.

The automaker added, it secured a three-year, 6.3-billion-euro credit facility with Intesa Sanpaolo, one of Italy’s major banking groups.

“The proceeds of this facility will be dedicated exclusively to FCA’s activities in Italy, and to support the more than 10,000 small and medium enterprises that make up the Italian automotive sector,” it said.

FCA CEO, Mike Manley, was optimistic about the company’s outlook. The company was able to “contain the impact of the COVID-19 crisis,” he said.

“Our plants are up and running, dealers are selling in showrooms and online, and we have the flexibility and financial strength to push ahead with our plans,” Manley said.

FCA designs, engineers, manufactures and sells vehicles, in a portfolio of brands. It employs nearly 200,000 people around the world.

Earlier this year, the company announced that, it is in joint venture talks with Hon Hai Precision Ind. Co., Ltd. (Foxconn), to develop and manufacture electric vehicles in China.

As well, FCA is in the process of completing a 50/50 merger with French automaker, Peugeot S.A.

“The COVID-19 crisis has further underlined the compelling logic of… the merger,” FCA said, adding, “we expect to meet the objective of combining as a single company by the end of the first quarter of 2021.”

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