Exclusive: Brazil, automakers deadlocked over loan collateral from parent companies - sources [Reuters]
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Source: Reuters
Exclusive: Brazil, automakers deadlocked over loan collateral from parent companies - sources SAO PAULO (Reuters) - Global automakers seeking emergency financing for their plants in Brazil have reached an impasse with several state and private banks, after the lenders demanded collateral from the parent companies, two sources told Reuters. The sources said the carmakers have balked at the request, delaying any decision on the billions of reais sought by automakers. Brazil is South America’s largest auto producer and a major base of operations for General Motors Co ( GM.N ), Fiat Chrysler Automobiles NV ( FCHA.MI ), Volkswagen AG ( VOWG_p.DE ) and Ford Motor Co ( F.N ), which are requesting a bailout for their local units to weather the crisis stemming from the coronavirus pandemic. An auto industry source familiar with the negotiations said the companies still hope a deal can be made before May 8, when Brazil’s auto industry association will hold a regular news conference to d
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