(Reuters) – The European Investment Bank (EIB) has increased to almost 800 million euros ($949 million) its funding to Fiat Chrysler Automobiles (FCA) FCHA.MI to support production of electric and hybrid vehicles, they said in a joint statement.
Investments to manufacture battery electric vehicles and plug-in hybrid electric vehicles will be mainly directed at FCA plants located in southern Italy, supporting employment and compliance with the strictest environmental criteria.
To improve capacity utilization at FCA’s Italian plants, the group has announced a 5 billion euro investment plan for the country through 2021 which envisages the launch of new electric and hybrid models.
EIB and FCA had sealed 300 million euros in financing before the summer to fund investments for plug-in hybrid electric vehicle production lines at plants in Melfi, in the southern Basilicata region, and battery electric vehicles at Fiat’s historic Turin plant of Mirafiori over the 2019-2021 period.
FCA has now finalized a 485 million euro deal with EIB to support both an innovative line of plug-in hybrid electric vehicles at the Pomigliano plant in the southern Campania region, Italy, as well as R&D activities at FCA laboratories in Turin.
The EIB credit line covers 75% of the total value of FCA’s investment in the project for the 2020-2023 period.