MILAN — Marelli said on Wednesday it had secured additional capital and loans worth 130 billion yen ($1.2 billion) from top shareholder U.S. investment firm KKR and Japanese banks.
The COVID-19 epidemic has forced most manufacturers to temporarily halt production and almost erased car demand in March and April, leaving automakers and suppliers in need of cash.
“Access to this additional capital gives us the flexibility to withstand an extended market downturn and protects the long-term financial health of the business,” Chief Financial Officer Christoph Hobo said in a statement.
Clients of the supplier, which combines former Fiat Chrysler Automobiles unit Magneti Marelli and Japan’s Calsonic Kansei, include Volkswagen Group, PSA Group and Fiat Chrysler.