The European Investment Bank (EIB) has increased financing to Fiat Chrysler Automobiles (FCA) from €300 million, assigned earlier this year, to €745 million (about $930 million) for R&D and plug-in electric vehicles.
The plan is to use the favorable interest rates of the loans to support electrification at FCA's Italian plants.
About €485 million will be spent on plug-in hybrids at Pomigliano plant and R&D in Turin. Additionally, €300 million will fall on plug-in hybrids at Melfi and all-electric cars at Mirafiori.
Plug-in Hybrid Vehicles in Pomigliano and R&D in Turin: €485 million
"An initial €485 million operation finalised in recent days has two components. For manufacturing, it supports an innovative line of hybrid motor vehicles (plug-in hybrid electric vehicles) produced at the Pomigliano plant in Campania. This is flanked by research, development and innovation (RDI) for electrification, connectivity and self-driving technologies mainly conducted at FCA's laboratories in Turin.
The EIB credit line covers 75% of the total value of FCA’s investment in this project for the four-year period spanning 2020-2023, with a five-year loan term and particularly favourable interest rates provided thanks to the AAA rating of the EIB's bond issues."
Plug-in Hybrid Vehicles in Melfi and Battery Electric Vehicles in Mirafiori: €300 million
"Before the summer, a €300 million operation was finalised for ongoing investments for the three-year period from 2019 to 2021, targeting plug-in hybrid electric vehicle production lines at plants in Melfi (Basilicata) and battery electric vehicles in Mirafiori (Piedmont)."
The EIB is trying to support major investments in Europe related to EVs, employment and EU climate goals, but it's of course also a tool to help struggling automotive manufacturers.
Since 2010, EIB already has loaned €3.2 billion in financing.