While Fiat prepares to present their second quarter financial report to the stock market, a number of significant events have been taking place over the last week. As the Group's share price continues to make good ground, a 1 billion euro revolving credit facility has been taken out, the influential BNP Paribas Bank have bought a 2 pct stake in the carmaker, and intense speculation has focused around the future of the giant Turin factory.

FIAT SECURES A 1 BILLION EURO CREDIT LINE

Fiat has opened up a fresh credit line with a consortium of banks - to the tune of 1 billion euros - which is intended for general corporate purposes. The facility has been well oversubscribed, demonstrating a high level of confidence in Fiat's financial position from the group of banks which are involved.

"Fiat signed a EUR 1 billion Credit Facility agreement with 11 leading international and 5 Italian banks," a statement issued in Turin said. "The three-year EUR 1 billion Multicurrency Revolving Credit Facility is undrawn and intended for general corporate purposes. Acting as Mandated Lead Arrangers were Banca Intesa, Barclays, BNP Paribas, Calyon, Citigroup (bookrunner), Société Générale, UBS and Unicredito. Joining as Co-Arrangers were ABN AMRO, Banca Nazionale del Lavoro, Capitalia, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch and Sanpaolo IMI.

"The facility was oversubscribed in excess of EUR 1.5 billion, clearly demonstrating the solid support that Fiat enjoys from its core relationship banks, both Italian and international," the statement concluded.

BNP PARIBAS BANK BUYS 2 PCT FIAT STAKE

BNP Paribas Bank has bought a 2.009 percent stake in Fiat. The news was revealed today by Consob - the Italian stockmarket watchdog - in its trading summary, although the purchase was actually completed on 21st July. The stake is split between BNP Paribas Arbitrage - who take a 1.876 pct shareholding - and BNP Paribas Securities Services - which account for the remaining 0.133 pct.

NEW BUSINESS PLAN UPDATE TO BE PRESENTED ON 3RD AUGUST

Fiat CEO Sergio Marchionne is currently working on a strategic update to the existing business plan governing the group's immediate future.
 

Italian daily newspaper La Repubblica - quoting unnamed sources - reported at the weekend that the plan will be presented on 3rd August to the national and regional government, as well as the involved unions and creditor banks.

The plan will finalise a timetable for upcoming new model launches, and outline at which factories these cars will be built, said Marchionne. He has reiterated that it doesn't change any of the currently projected financial targets which remain in place.

SPECULATIONS SWIRLS AROUND THE MIRAFIORI PLANT

The future of Fiat's sprawling Mirafiori plant in Turin has been the subject of intense media speculation over the last few weeks. The Mayor of Turin - Sergio Chiampario - has gone on record as saying that the local authorities are in talks with Fiat to safeguard future employment at the factory which assembles a range of models that includes the Fiat Punto and Multipla, as well as the Auto Division's two executive flagship sedans: the Alfa Romeo 166 and Lancia Thesis.

There has been much conjecture in the local media that the City of Turin along with the wider Piedmontese regional authorities are at present discussing purchasing 500,000 square meters of the Mirafiori plant for 100 million euros, with ambitious plans in mind to convert it into a high-tech automobile research centre, in exchange for future employment level guarantees.

Meanwhile, Fiat have announced a further two week lay-off of workers at Mirafiori - to compensate for low demand - which will run from 5th-18th September. Running under the mandate of the government's redundancy payment scheme, the first week will see 3,400 workers who build the Fiat Punto, Multipla, Lancia Thesis and Alfa Romeo 166, all downing tools, while the second week will involve 2,500 staff on just the Punto line.

ALFA ROMEO ARE GEARING UP FOR PRODUCTION OF THE ALFA 159

Staff at Alfa Romeo's factory at Pomigliano d'Arco, near Naples, will shortly begin working double shifts as production of the new Alfa 159 sedan gets underway. Around 300 additional workers will be also hired to cope with the expected strong demand.

The new Alfa 159 model - which replaces successful and long-running Alfa 156 - hits the showrooms in September, and pre-ordering got underway earlier this month. Highly praised thus far by the press, the Alfa 159 is expected to be a genuine market rival to the established prestige German brands, and initial pricing has been revealed to be highly competitive.