Italian automotive supplier Marelli announced it has secured additional funding from its shareholder, KKR, and leading Japanese banks. In light of the ongoing uncertainty caused by COVID-19, the additional capital of JPY 130bn (approximately $1.2 billion USD) will provide Marelli with greater long-term security and flexibility, in the event of an extended market downturn.
Prior to securing this long-term funding Marelli introduced a number of measures to anticipate and react to the COVID induced shutdowns, which protected the business and maintained financial flexibility. Marelli says these measures, combined with the support of its shareholder and banks, leave the company management confident in its ability to withstand the adverse, temporary impact of COVID-19 and will enable Marelli to continue with its investment plans for technology and geographic expansion.
Christoph Hobo, chief financial officer, Marelli, said, “The effect of the COVID-19 pandemic on the global automotive industry has been significant. This funding demonstrates the strong support of our shareholder and our banks and their belief in the outlook for Marelli, its people and our overall strategy. 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, allowing us to continue the execution of our strategy with greater certainty and confidence.”