MILAN -- Auto supplier Marelli said Wednesday it had secured additional capital and loans worth 130 billion yen ($1.2 billion) from top shareholder U.S. investment firm KKR and Japanese banks.
The COVID-19 epidemic has forced most manufacturers to temporarily halt production and depressed car demand in March and April, leaving automakers and suppliers in need of cash.
"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," CFO Christoph Hobo said in a statement.
Customers of Marelli, which combines former Fiat Chrysler Automobiles unit Magneti Marelli and Japan's Calsonic Kansei, include Volkswagen, PSA Group and Fiat Chrysler.
