Due to the coronavirus emergency, FCA suspends production at plants in North America until the end of March. The group announced it in a note Wednesday night. The same decision was also made by Ford and General Motors. Fiat Chrysler communicated on Monday the interruption of activity in European factories until March 27.
"During the period of production suspension, which we will evaluate again at the end of this month - reads the FCA note - the company will make interventions to production activities to facilitate the changes agreed with the Uaw (the first US union in the category, ed), Between including intensified shift structures and times and sanitation interventions".
The news of the production stoppage in North America had repercussions on the share on the FCA Stock Exchange, which started the session marked by volatility, changing sign several times. By mid-morning, the group's shares lost 1,3%, to 6,039 euros, in sharp contrast with the Ftse Mib, which gained 3,7% in the same minutes.
“We must ensure that our employees feel safe in the workplace and that all possible measures are taken to ensure their protection – commented the CEO of FCA, Mike Manley – While we focus on the health and safety of our workers we are also evaluating the impact on our current financial guidance of all the measures taken within the company and of the macroeconomic conditions linked to the coronavirus emergency. We will provide an update on our financial guidance when we have completed this assessment and have sufficient visibility into market conditions."
As Credit Suisse analysts note, based on IHS estimates for March, the daily production of auto plants in North America is 11.900 vehicles for Ford, 12.900 for GM and 10.600 for FCA.
Fiat Chrysler has also communicated that it has obtained a new one financing from the European Investment Bank. The loan is for 300 million euros, has a five-year maturity and will be used for investments in the three-year period 2019-2021.
