The coronavirus epidemic and the associated production shutdown forced Daimler AG obtained a new credit line for the next 12 months.
Yes, Mercedes’ parent company Daimler has just got a huge bank loan. Under the agreement, four major European banks, BNP in France, Banco Santander in Spain, Deutsche Bank in Germany and JP Morgan in the UK, will provide the company with a credit line of € 12 billion starting this month.
The new loan facility can be utilized within the next 12 months. In addition, the period can be extended twice by 6 months if necessary. The credit line comes in addition to an 11 billion euro revolving credit with a term until 2025, including extension options.
Although no exact figures have been provided, it is likely that the shutdown in the automotive industry in connection with the coronavirus epidemic, like the VW group, will cost Damiler AG a loss of billions of euros on a weekly basis.
Thus, the extra credit line will probably be needed, even if the company can operate at a profit in the second half of the year.
