On the shields this morning the FCA stock, which is around 10.30 among the best in the Ftse Mib with an advance of 5%. The exploit is shared with the other big players in the European sector, who evidently benefit not only from the general enthusiasm generated by the strengthening of the ECB's bazooka, but also specifically from the industrial recovery plan of Germany, enriched by a further 130 billion which will converge largely in the auto sector, overwhelmed by the crisis. Frankfurt's Dax index gains more than 2%, as does Volkswagen, but Renault and Peugeot do even better in France, with advances of 6% and 5% respectively at mid-morning.
Furthermore, in the case of Fiat Chrysler, the very close to the go-ahead for the 6,3 billion euro loan euros, disbursed by Intesa Sanpaolo with the (public) guarantee of Sace. However, Sace itself (Cdp group) specified in a hearing to the bicameral Commission that "the loan will be used for salaries and suppliers of Italian factories". Even the Minister of Economy Roberto Gualtieri, in a hearing before the bicameral Commission, remarked that the authorization will be subject to "particular conditions", such as "payment of suppliers, maintenance of employment levels and investments in Italy also for electric car models”. “The sanctioning mechanisms can reach the repayment of the entire loan,” Gualtieri said in Parliament, adding that the decision will arrive in a few days.
Yet for FCA on Thursday the news had arrived, which emerged from the financial statements of Fiat Chrysler Finance Europe, that the automotive group now considers it unlikely to win the judicial dispute which opposes it to the European Commission on the state aid received by Luxembourg since 2012. This was stated by the FCA itself in the 2019 financial statements of Fiat Chrysler Finance Europe (FCFE), the Luxembourg company 100% controlled by Fiat Chrysler Automobiles NV which was been accused by Brussels of having unduly received aid thanks to a tax agreement (tax ruling) signed ad hoc with the Grand Duchy.
To deal with this situation, FCA has set aside 58,7 million in taxes. Already in September the European Court of Justice he had proved the EU right in this controversy, ordering the Italian-American car group to pay 30 million euros in "back taxes" to Luxembourg. The agreement had been deemed illegal by EU leaders and in particular by the Commissioner for Competition Margrethe Vestager. The sentence followed a tightening by the EU Commission on the tax agreements guaranteed by some European states to multinationals to gain their presence in the territory.
