Fiat Chrysler Reported A $1.1 Billion Loss In Q2 2020
Italian-American concern Fiat Chrysler Automobiles (FCA) announced a smaller-than-expected loss in the second quarter of this year, amounting to €928 million ($1.1 billion), according to the FCA report distributed on Friday.
According to the CEO of the car giant, Mike Manley, this was facilitated by " decisive actions and the extraordinary contribution of the labor team, which allowed to reduce losses in the crisis due to the coronavirus pandemic."
According to preliminary estimates, the car giant's losses were expected to be €1.97 billion ($2.3 billion) before taxes.
At the same time, the company's financing needs (for loan repayments and investor interest) reached €4.9 billion ($5.7 billion) in the second quarter, the report said.
Important in this regard, according to experts, was the agreement reached in June by the FCA with the Italian government on the terms of a loan of €6.3 billion ($7.4 billion) - the largest loan to car manufacturers since the beginning of the coronavirus pandemic. One of the main conditions for its issuance was an obligation on the part of the concern not to reduce jobs in the Apennines.
Last December, Fiat Chrysler Automobiles and French car giant Groupe PSA (Peugeot Societe Anonyme) signed a merger agreement. It was expected that its implementation would take about 12-15 months. As recently stated by Groupe PSA President Carlos Tavares, the companies will complete the merger process depending on what financial position they find themselves in at the end of the year.
On May 13, both PSA and FCA announced the decision to not distribute an ordinary dividend in 2020 related to financial year 2019, in light of the impact from the COVID-19 crisis. In July, the Group confirmed pricing of €3.5 billion of notes issued under its Medium Term Note Programme.