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MERGED: FCA & The COVID-19 (Coronavirus) Crisis:

Bili

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FCA-PSA-Ford is better than FCA-Renault-Nissan-Mitsubishi



I don't know what will happen and I don't want to speculate about future outcome but IMO even proposed FCA-PSA merger could be altered.

First of all French Government said that they are prepared to nationalize companies if necessary.
 

AlexB

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I don't know what will happen and I don't want to speculate about future outcome but IMO even proposed FCA-PSA merger could be altered.

First of all French Government said that they are prepared to nationalize companies if necessary.
Another Macron-Elkann blowup (nationalizing PSA would do that) would make France look even worse as a place to do business.
 
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Bili

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Another Macron-Elkann blowup (nationalizing PSA would do that) would make France look even worse as a place to do business.

That's what if... If PSA is going to gone down France is there to save them. Who will save FCA?
 

Bili

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Ferrari and Fiat look at helping Italy make ventilators in virus crisis

MILAN -- Italian automakers Ferrari and Fiat Chrysler Automobiles are in talks with the nation's biggest ventilator manufacturer to help to boost production of the life-saving machines that are urgently needed in the coronavirus crisis, company officials said on Thursday.

Italy is at the epicenter of the pandemic and its government has embarked on a big expansion of the number of intensive care beds, many of which will require ventilators to keep patients alive by taking over breathing functions.

Siare Engineering in northern Italy, where deaths are nearing 3,000 and climbing sharply, is in talks with Fiat Chrysler, Ferrari and Italian partsmaker Marelli to make some parts, source others and to possibly help with the assembly of ventilators.
 

Bili

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Let’s Get Moving by Staying Home: FCA Bank and Leasys together with the Italian Red Cross, mobility at the service of the country

  • FCA Bank and its Leasys subsidiary together with the Italian Red Cross against the Covid-19 emergency.
  • Leasys will make available to the Italian Red Cross 300 Fiat and Jeep vehicles that are part of the Leasys Mobility Stores fleet and 5 biocontainment ambulances Fiat Ducato-based.
  • The vehicles will be used to distribute food and medicines in Italian cities to the sick, the elderly and people in need of assistance.

Turin, 20 March 2020

FCA Bank and its Leasys subsidiary take action to support Italy following the outbreak of Covid-19, by making available to the Italian Red Cross a fleet of 300 Fiat and Jeep vehicles as well as 5 biocontainment ambulances Fiat Ducato-based to contribute to address the health emergency.

Thanks to the extensive presence of Leasys Mobility Stores in Italy, Red Cross volunteers deployed throughout the country, through 700 territorial committees, will be able to rely on sound support in their daily deliveries of basic necessities and medicines in Italian cities to people in need of assistance.

Since the start of the epidemic, the Italian Red Cross has in fact been engaged in many ways, providing relief and logistic, health, psychological support as well as the safe transport of people in need of hospitalization or home assistance. The Italian Red Cross decided to turn this emergency into a “time of kindness”, intensifying throughout the country all the services devoted to the most vulnerable members of society, such as home delivery of food, medicines and other basic necessities, as well as social transportation. Every day thousands of people call the Italian Red Cross at its toll-free number - 800 065510 - to ask for help.

“Thanks to the generous donation by FCA Bank and its Leasys subsidiary, we will be able to enhance our services and to be closer to the people that are in greater need of support at this time”, said Francesco Rocca, President of the Italian Red Cross.
“The elderly, the immunocompromised and all those who cannot go out to shop need someone who can do it for them. That’s what the Red Cross volunteers are for. That’s why there is Un’Italia che Aiuta (A Helping Italy)”.

“FCA Bank and Leasys are proud to contribute in a tangible manner to the initiatives of the Italian Red Cross and its volunteers and make themselves available to the community by trying to support those who need help, to face and overcome together this emergency as soon as possible”
said Giacomo Carelli FCA Bank’s CEO and General Manager.


Let’s Get Moving by Staying Home: FCA Bank and Leasys together with the Italian Red Cross, mobility at the service of the country
 

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My breakdown of Ford's Q1 Cash Crash that lead to the actions undertook by the Company the past week:
Base on past recent performance, and statements about ongoing ''restructuring'' my estimate is Ford burn:
*Around $3 billion U$D Cash burn (give or take $400 U$D million+/-)from ''Restructuring & Non-North American losses
*$2 billion U$D in Product/CapEX spending
*Around $1.3 billion U$D (give or take $200 U$D million +/-)Negative Seasonal effects Working Capital/Payables/Inventory (''Legacy Detroit 3'' thing)
*Breakeven Ford North America

Ford been struggling to make money in both China as well Europe for a significant period or time. FCA has hunker down in China after not succeeding to save money, but Ford has tried to play catch up after being an ''flash in the pan'' with some cost reductions. Corona shut China down for most of Q1,have lag affects and now Europe which will in my point-of-view accelerate.

The product/CapEX spend is on trend with Ford given the new F-150 and other product programs near the launch stage. The ''Legacy Detroit 3'' seasonal thing is January & February are the worst months in U.S. Vehicle sales which dealers are taking less vehicles from ''Legacy Detroit 3'' in Q1,and at the same time ''Legacy Detroit 3'' plans for a ramp up for the ''Summer Driving Season'' which as doubles as the buying season (and therefore dealers take more vehicles). ''Legacy Detroit 3'' financially commit to parts/materials/metals to support the ramp up for the ''Summer Driving Season''.
Which bring us to Ford North America.....which been having the weakest recent margin performance of the ''Legacy Detroit 3''. The Corona shut down likely wiped out a 5%-6% EBIT margin business because it is a time of no F-Series production.


Sales have also crash in the U.S. in the last two weeks with stuff like Olive Garden having negative -60% comp, and Ford has access to Dealers pulling back on orders. Ford could burn another $4-5 billion U$D in Q2.
Corona needs to really go away by early May for the sake of everybody.
 

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Fiat Chrysler Automobiles NV has sent more staff at its U.S. headquarters home following a report that one worker tested positive for the coronavirus and died.

The deceased employee was in his 50s and worked at the company’s main office in Auburn Hills, Michigan, the Detroit Free Press reported Sunday, citing unidentified employees. The newspaper said he provided technical support on dyamometers, which are used to measure torque, braking power and fuel economy.
“We have cases of Covid-19 in our business enterprise, however out of respect for employee privacy, we will not provide additional comment,” the company said in an emailed statement. It has postponed work associated with test laboratories beginning Monday and will advise employees when operations will resume.''
 

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Oh, Mary... pr Spin
Today, she scrap her promises to Wall Street (no shock there) and GM had to draw down its Line-Of-Credit.
GM was targeting $15-$16 billion of cash at the end of March, but that was base on the old promises to Wall Street before the shut down of the Chinese economy.
General Motors is withdrawing its 2020 financial guidance and doubling its cash reserve by borrowing $16 billion from existing credit lines as it weathers the coronavirus pandemic, the automaker said Tuesday.

The action will improve GM's cash position and preserve financial flexibility in uncertain global markets. The automaker had expected to have a cash position of about $15 billion to $16 billion at the end of March.
GM's dividend not safe.....
"We have about a month before we would typically declare our Q2 dividend," she said. "We will evaluate how the macro backdrop evolves before deciding."
So far, FCA is the only ''Legacy Detroit'' OEM that hasn't tapped its revolving Line-of-Credit .
 

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This wasn't the kind of crisis that Sergio had in mind when he made Zero Net Debt the group's main target, but FCA is definitely in a better place to weather this crisis today because of that foresight.
 

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FCA have suspend development programs leading to layoffs from contractors in across FCA North America but especially the CTC:

FCA has drawn down €1.5 billion on the Company's credit lines, but signed a new € 3.5 credit facility which on top of the current Line-Of-Credit
FCA announces signing of an incremental credit facility of € 3.5 billion
Fiat Chrysler Automobiles N.V. (NYSE: FCAU / MTA: FCA) (“FCA”) announced today that it has entered into a new credit facility (“Credit Facility”).

The Credit Facility, entered into with two banks, will be available for general corporate purposes and for working capital needs of the Group and is structured as a bridge facility to support the Group’s access to capital markets.

The Credit Facility may be drawn in a single tranche of €3.5 billion, with an initial 12-month term which can be extended at the Company’s option for an additional 6-months’ term on the first anniversary of the signing.

The Credit Facility is additional to the Company’s existing credit facilities of €7.7 billion including the Bi-lateral credit lines worth €1.5 billion that the Company has started to draw down.

This transaction confirms the continued strong support of FCA’s international key relationship banks’ in the current extraordinary circumstances.
SEC Filing | Fiat Chrysler Automobiles https://fcagroup.gcs-web.com/static-files/d8499130-e63d-4d39-9cb1-c3c85279c501


FCA plan to reopen North America plants April 14: Belvidere, other FCA North American plants expect to reopen April 14
 
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AlexB

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I think April 14 is way too soon to re-open, Mid-May is more likely.
However the impact to FCA financially likely to be the similar in size that the strike had on GM.
So I see more delay's to anything Dodge,along with anything FWD in North America.
I hear Grand Cherokee is now the "traditional Detroit Fall launch" October 2021.
If the French try to push John Elkann too much for concessions, John will demand FCA's termination Fee gets paid.
 

redriderbob

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FCA Italia Starts Manufacturing Ventilators:
First Units Have Started Rolling Out...

fiat-chrysler-automobiles-texnognosia-kata-covid-19.jpg


FCA Italia Starts Manufacturing Ventilators: - Mopar Insiders
 

Bili

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FCA Restarts Production at Sevel plant with Maximum Attention to Workplace Health and Safety

FCA Restarts Production at Sevel plant with Maximum Attention to Workplace Health and Safety

A variety of health and safety measures have been implemented at the Sevel plant in Atessa, Italy – a joint venture with PSA Group and one of the leading producers of commercial vehicles for the international market – in preparation for today’s return to work of most of the over 6,000 employees.Those measures include sanitization of over 300,000 m2 of workshop floor, installation of around 130 dispensers of hand sanitizer, posting of information on prevention on 15 large billboards and 25 video monitors, distribution of over 6,000 informational brochures and 18,000 posters, installation of a dozen body temperature monitoring cameras at plant entrances and over 600 points equipped with disinfectant materials for employees to clean the equipment they use during their shift.
These and other measures form part of the agreement signed on April 9 with the Italian trade unions FIM-CISL, UILM-UIL, FISMIC, UGLM, AQCFR and FIOM-CGIL. This agreement establishes a comprehensive series of measures for all FCA sites in Italy to ensure maximum protection of workers following restart of the production activities suspended due to the Covid-19 crisis. At the same time, limited activities also recommenced at the plants in Cassino, Pomigliano, Termoli and Mirafiori in connection with components supply for the Sevel plant.
Pietro Gorlier, COO for FCA's EMEA region, said: “At the Sevel plant in Atessa today, we have demonstrated that protecting our workers is our main priority. Today's reopening of the Sevel plant, together with R&D activities and pre-series production of electric and hybrid models in Turin and Melfi, is the result of rigorous analysis and preparation carried out in collaboration with leading virologists and other experts and agreed with all trade unions. We have been working daily with the Italian government and local authorities to prepare for a return to production in Italy, while ensuring there is no compromise to the safety of anyone working at any of our production facilities or offices.”
Before employees returned to work, the Company repeated cleaning and sanitization activities carried out at the plant when production was suspended on March 17. Those activities covered 18 rest areas, 52 toilets, 29 changing rooms with more than 7,400 lockers, 2 medical rooms and 4 cafeterias. Maximum occupancy of dining areas will be reduced and opening hours extended to ensure compliance with the minimum required distance of one meter between individuals. These areas have also been equipped with sanitizers and disinfectant materials for employee use (sanitizing gel, antibacterial soap, surface cleaning kits, etc.). Safety signs and notices have also been posted throughout the plant.
Prior to the start of production, all Sevel employees were sent a link via WhatsApp and email to a webpage explaining measures to be taken in each production area, together with video tutorials. The measures include maintaining a minimum distance of one meter between individuals, instructions for washing hands with soap and water or sanitizing gel, instructions for refilling a cup or water bottle from public dispensers, new rules for the company cafeteria and correct management of meetings. Employees were also provided with instructions on how to recognize and respond to Covid-19 symptoms and preventive measures to be taken in an emergency.
Production and office areas have also been reconfigured based on specific health and safety requirements to enable the redistribution of workers and to increase distancing between those working in close proximity on the assembly line. In production areas, movement of personnel between areas has been limited to the minimum level possible and based on specific needs. Similar measures have been implemented in common areas, while the plant’s 85 offices have been fitted with protective barriers between employees or workstations have been relocated. Work breaks have been organized by area and phased throughout the course of each shift.
In the coming days, training on safety standards will be made available via e-learning, standard internal communications channels and by sector managers with the support of specialized medical personnel.
Today, every employee at the Sevel plant was given a personal kit containing surgical masks and gloves (to be replenished daily), as well as a pair of safety glasses to be worn when cleaning their individual workstation. The number of masks supplied also means that those employees who commute via public transport will have an additional mask for their travel to and from work.
Finally, rigorous checks were also put into place at all entrances to the Sevel plant, as provided under the agreement signed by FCA and the trade unions. Everyone entering the premises on foot or by car, had their temperature checked by thermal camera or remote thermometer operated by first aid and medical staff wearing adequate protective equipment.


London, 27 April 2020

FCA Restarts Production at Sevel plant with Maximum Attention to Workplace Health and Safety
 

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