This archive report was first published on 25 June 2020.
On June 25, 2020, Italy's Economy Minister Roberto Gualtieri announced a 6.3 billion euro loan guarantee for Fiat Chrysler, a move aimed at preserving the Italian auto industry.
The loan, which includes conditions not to relocate or cut jobs, is part of Fiat Chrysler's merger with French rival PSA. The merger aims to create the world's fourth-largest automaker.
According to Gualtieri, the loan will also help launch 'investments, innovation and employment in a strategic sector for the economic and industrial future of the country.'
However, the request for state support on such a large loan has been met with controversy, particularly as Fiat Chrysler's corporate headquarters are in Amsterdam.
Despite this, Fiat Chrysler has assured that all the money will be spent on its Italian operations, employing close to 55,000 people in the country.
'This is an example of Italy coming together to safeguard a vital industrial ecosystem,' said company official Pietro Gorlier.
The loan is essential to help the industry kickstart Italy's economy following a punishing lockdown and wider crisis triggered by the pandemic.
