FCA draws down on €6.25bn credit facility

Fiat Chrysler Automobiles said on Tuesday it had drawn down on a €6.25bn (roughly R129bn) credit line to buffer its cash reserves during the uncertainty around the coronavirus health crisis.

The funds from the revolving credit facility, originally signed in June 2015, add to the €1.5bn (roughly R30.9bn) Fiat Chrysler has drawn down from other credit lines.

The outbreak has pummeled vehicle sales and production for car makers across the world, forcing many to take out multi-billion dollar loans to ride out what is likely to be a deep global recession.

Ford Motor Co has drawn down over $15bn (about R285bn) from revolving credit lines and last week raised $8bn (roughly R152bn) from corporate debt investors to shore up its cash.

General Motors Co has entered into a 364-day revolving credit agreement of $1.95bn (R37bn), which the company said will be exclusively used by its financial services business.

Earlier this month Fiat Chrysler said it had agreed to a new €3.5bn (roughly R72.2bn) credit facility with two banks, which remains undrawn.