After at the end of June, Fiat Chrysler Automobiles received a state-guaranteed loan worth $7.1 billion to help cope with the pandemic's effects; now, the company is looking for ways to reduce a cash pay-out which is part of the PSA merger.
FCA is trying to reduce the $6.2 billion special dividend cash pay by giving them assets instead of money, move which will allow the group to hold on to cash at a time when the pandemic's effects are still in force. Besides this option, FCA is considering spinning off the Sevel van – a 50-50 venture between FCA and PSA. But according to specialists, the other idea is rather complicated, as PSA will have to transfer its stake in Sevel to FCA, and the European Union's concerns about the merger's consequences in the van segment would be confirmed.
Still, this is just one of FCA’s problems. On Wednesday, it released the Q2 sales, which were down 39% compared to the same time last year, which means that only 367,086 vehicles have been sold. However, it recorded gains in the online purchase sector, where it reported a 20% increase, compared to last year's 1%.
Moreover, the company warned that the employees at two of its U.S. plants wouldn't receive their salary if they continue to deliberately halt the assembly lines. Also, employees who are lying in health-screening questionnaires will be fired. The tensions emerged six weeks after the workers resumed their activity, and there are concerned about their safety since social distancing in workplaces is difficult.
FCA closed higher by 0.51%, while PSA is trading lower by more than 2%.
Sources: detroitnews.com, investing.com, eu.freep.com
