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Fiat Chrysler Draws Down on $6.79 billion Credit Facility to Buffer Cash Reserves

Fiat Chrysler Automobiles said Tuesday it had drawn down on a 6.25 billion euro ($6.79 billion) credit line to buffer its cash reserves through the uncertainty around the coronavirus well-being crisis.

Fiat Chrysler Draws Down on $6.79 billion Credit Facility to Buffer Cash Reserves

The funds from the revolving credit facility, initially signed in June 2015, add to the 1.5 billion euros Fiat Chrysler has drawn down from other credit lines.

The pandemic has dented vehicle sales and manufacturing for auto manufacturers across the world, forcing many to take out multi-billion greenback loans to ride out what’s likely to be a deep global recession.

Ford Motor has drawn down over $15 billion from revolving credit lines and last week raised $8 billion from company debt buyers to boost its cash.

General Motors has entered into a 364-day revolving credit settlement of $1.95 billion, which the corporate stated will be completely utilized by its financial services enterprise.

Earlier in April Fiat Chrysler said it had agreed to a new 3.5 billion euro credit facility with two banks, which remains undrawn.

All Detroit car manufacturers have shutdown their plans to support country’s attempt to slow the spread of COVID-19

South Korea’s Hyundai Motor’s Cars have been idled on U.S., as the nation is worst hit by the novel coronavirus.

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