Owner of Vespa, Gilera, Aprilia, Moto Guzzi, Derbi, and Scarabeo borrows €60 Million to kick-start production and R&D after the COVID-19 outbreak and also to further strengthen the company’s financial structure. The pandemic has taken a serious toll on the automotive industry, especially manufactures based in countries like Italy. Italy had one of the hardest hit and with Piaggio based in Italy, the company had to shut down operation from the 22nd of March 2020.
With things going back to normal, Piaggio Group from Italy loans €60 Million from Banca Monte dei Paschi di Siena and Cassa Depositi e Prestiti (in equal proportions). According to Piaggio; “the new line of credit will fund investments in research, development and innovation, and further, strengthen the Group’s financial structure.”
To elaborate more, according to the official press statement by the Piaggio Group; the line of credit will support Piaggio’s research and development of innovative technologies and product solutions in the safety and sustainability department. On top of this, Piaggio says their aim is to strengthen their range of scooters, motorcycles and other commercial vehicles to enable Piaggio to lead position in the mobility sector and further strengthen the company’s financial structure.
The credit facility with Banca Monte dei Paschi di Siena and Cassa Depositi e Prestiti doesn’t indicate Piaggio is under financial trouble. The transaction is one of the initiatives organised by CDP and Banca MPS’s to help companies get back to normal and resume production after the pandemic.
Source: Piaggio Group