Fiat Chrysler announced it has signed a $25 million loan with Morgan Stanley for its next-generation Chrysler 200, the company’s first major investment in a midsize car in nearly five years.
The deal will help finance the production of the new Chrysler 200 at a plant in Fremont, California, which has been under construction for about five years, and it will help the automaker meet an April 1 deadline for a $3.2 billion cash infusion from GM.
It also will help fund the plant’s future expansion.GM is expected to announce the next-gen Chrysler 200 in April.
“Fiat Chrysler Automotive has been a champion of our customers and the auto industry, and we are thrilled to work with them on this investment,” said GM CEO Mary Barra.
“The next-Gen Chrysler 200 represents an important new step in our strategic strategy and demonstrates our commitment to expanding and building on our successful business.”
The $25 billion loan, which was announced on Wednesday, comes as GM is struggling to turn around its $7.8 billion in 2016 losses and is struggling with the impact of a massive global recession that hit the United States and Europe.
The automaker, however, is expected on Thursday to announce that it is on track to reach its 2018 revenue goals of $8.6 billion, $7 billion more than a year earlier.