Editor’s note: This article is from Krypton 36 “Future Automotive Daily” (micro-channel public number ID: auto-time), Author: Terence Lee Nan.Author | Edited by Li Zinan | After Xu Yang publicly rejects German government assistance, Daimler may pin his hopes on the bank.According to Sina US stock reports, sources said Daimler is currently in talks with banks to obtain at least 10 billion euros in credit lines to help them deal with the impact of the epidemic.The specific credit line may be announced as early as next week.The move is part of a series of measures Daimler is seeking to underpin its financial strength.Daimler declined to comment.The news overturned the previous Daimler CEO’s statement on the company’s financial situation.In an interview with the German Business Daily on March 25, Kang Songlin said that although Daimler’s major plants in Europe have suspended production to control the spread of the new coronavirus epidemic, Daimler currently has sufficient funds.According to foreign media reports, due to the epidemic, Daimler’s financial pressure will further increase, and it is very likely that it will be maliciously acquired.In order to protect domestic enterprises, some politicians in Germany have asked government departments to protect domestic enterprises from being acquired maliciously by foreign capital. The German government has also promised to provide liquidity support to enterprises.A government source said that the German cabinet will support a supplementary budget of 150 billion euros (about 1.14 trillion yuan) to further assist German companies.”At present, Daimler does not need government assistance. Generally speaking, the automotive industry still has a very large order volume in the face of the crisis.” Conlinson responded to the assistance in an interview.In addition to Mercedes-Benz, many European car companies are also facing cash flow shortages.The Financial Times quoted an interview with Volkswagen Chief Financial Officer Frank Witter as saying that Volkswagen urged the European Central Bank to speed up its emergency loan program to support companies affected by the corona virus.The European Central Bank should buy short-term bonds with a minimum maturity of six to nine months.But for car companies such as Daimler and Volkswagen, relying on credit to solve the crisis may not be the best way.Recently, Standard & Poor’s Global Ratings downgraded Ford’s credit rating from BBB- to BB +, also known as “junk grade”.In addition, S & P also downgraded BMW’s rating to A, with a negative outlook.
After rejecting government aid, Daimler may seek 10 billion euros in credit support
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