Fiat Chrysler draws down on 6.25 billion euro credit facility

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FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo

(Reuters) – Fiat Chrysler Automobiles N.V. (FCAU.N) (FCHA.MI) said on Tuesday it had drawn down on a 6.25 billion euro ($6.79 billion) 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 1.5 billion euros Fiat Chrysler has drawn down from other credit lines.

The outbreak has pummeled vehicle sales and production for automakers 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 (F.N) has drawn down over $15 billion from revolving credit lines and last week raised $8 billion from corporate debt investors to shore up its cash.

General Motors Co (GM.N) has entered into a 364-day revolving credit agreement of $1.95 billion, 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 3.5 bln euro credit facility with two banks, which remains undrawn.

($1 = 0.9211 euros)

Reporting by Uday Sampath in Bengaluru; Editing by Bernard Orr

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