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Peugeot-Citroen (PSA) announced today that it will borrow another 3 billion euros to deal with the impact of novel coronavirus's epidemic, Reuters reported. Peugeot-Citroen said the loan was based on an unused credit line of 3 billion euros already held, with an initial maturity of 12 months and an option to extend it twice, each for three months.

Affected by the new pneumonia epidemic, the PSA Group has previously closed production at all its factories in Europe, including the Milus factory in France, the Madrid factory in Spain, the Ellesmere port factory in the United Kingdom, the Russelsheim factory in Germany, the Eisenach plant and the Glivez plant in Poland. According to the PSA Group's plan, these plants will resume production on March 27, but due to the severe epidemic in Europe, the exact date of the restart plan has not yet been confirmed.

Under the continued spread of the epidemic, automobile production and sales in Europe and the United States have stagnated for a time, and major car companies are taking a series of measures to deal with the impact of the epidemic, including expanding profits and income, cutting costs and expenditure, and obtaining cash flow through credit to tide over the crisis.

On March 20th, Ford announced that it would fully use two credit lines up to $15.4 billion, including $13.4 billion in corporate credit facilities and $2 billion in supplementary credit facilities, to ensure stable cash flow.

On March 24th, GM announced the launch of a $16 billion credit line to deal with the economic losses caused by the epidemic. GM said that by using credit lines and cash on hand, it would have $310 to $32 billion in available cash by the end of March.

On March 26th FCA announced a new credit agreement with two banks with a credit line of 3.5 billion euros with an initial maturity of 12 months and a six-month extension.

In addition to the three automakers, Daimler signed a 12 billion euro (92.2 billion yuan) credit line agreement with four international banks last Thursday to increase its financial flexibility in the event of an epidemic crisis. Earlier, Toyota sought credit lines totaling 1 trillion yen ($9.2 billion) from two big Japanese banks.

According to World Health Organization (WHO) 's real-time statistics, as of 00: 00 Beijing time on April 6, there were 1136851 confirmed cases of COVID-19 and 62955 deaths. At present, there have been confirmed cases of COVID-19 in 208 countries and regions in the world, and more than 1.05 million cases outside China. Affected by the COVID-19 epidemic, a number of overseas car companies announced in mid-March that they would suspend factory production and plan to resume production in mid-early April. However, at present, the epidemic in many countries has not been effectively controlled, and the arrival of the inflection point is still unknown. At present, some car manufacturers have extended the suspension of production to the whole of April.

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