With Factories Shuttered, Fiat Chrysler Borrows $6.8 Billion to Bolster its Cash Hoard
Fiat Chrysler Automobiles (NYSE: FCAU) said on Tuesday that it has borrowed 6.25 billion euros ($6.8 billion) from a revolving line of credit in an effort to buffer its cash reserves while many of its factories remain closed amid the coronavirus pandemic.
The funds borrowed from the revolving credit facility are in addition to the 1.5 billion euros that FCA began drawing from other credit lines in March.
The outbreak of COVID-19 has clobbered auto sales and auto manufacturing around the world. Most of the world's auto factories have been forced to idle for weeks in response to social-distancing measures imposed to try to slow the spread of the virus. While some factories in China have managed to reopen, most others remain closed -- with uncertain timelines for restarting production.
Source Fool.com
