As the severity of the COVID-19 epidemic became apparent, Fiat Chrysler (FCA) leadership took quick and decisive actions to protect employees and communities, as well as to safeguard their earnings power and liquidity.
Among these steps were temporarily suspending production at all plants, implementing remote working where feasible and enhancing sanitation protocols for all facilities. In addition, the group delayed non-essential spending, significantly reduced marketing spend and salaries for substantially all salaried employees were reduced or deferred. To further strengthen liquidity, a new €3.5 billion incremental credit facility structured as a bridge to capital markets was secured in April. FCA will continue to assess all funding options and expect to access funding as and when available aon reasonable terms to further strengthen their balance sheet and enhance liquidity to optimize financial flexibility.
Despite current operational challenges created by the crisis, the group is leveraging its resources and ingenuity through a broad range of community support initiatives in each region. The group is producing protective masks for healthcare workers and first responders, with over 1 million shipped. In addition, the group has partnered with U.S. and Italian medical equipment manufacturers to support production of ventilators, other medical equipment and personal protective equipment. The group has also funded scholarships at medical schools, created a makeshift field hospital in Brazil, with a further two under construction in Argentina and Brazil, and financially supported community efforts such as providing 1.5 million meals to children in need.
Production in other regions will be phased in over a period of time and aligned to consumer demand. Return to work procedures for offices and other facilities have commenced and will be phased in, with continued widespread use of remote working practices.
Notwithstanding these unexpected and unprecedented times, FCA and Groupe PSA remain committed to their 50/50 merger that will create a leading global mobility company.
Published in the June 2020 Edition
