Giving an indication of just how dire Fiat Chrysler Automobile’s situation is, and that PSA is in control of merger discussions, John Elkann, Chairman of the Italian-American automaker announced in a letter to employees on March 31, that he and members of the company’s board of directors were giving up their salaries until the end of 2020.
Only 4 days earlier, on March 27, FCA Chief Executive Mike Manley announced that he will take a 50 percent pay cut for three months and some other FCA executives were reducing their wages by 30 percent for three months as part of efforts to protect the company’s financial health during the coronavirus pandemic.
The letter also says that most company employees will be asked to accept a temporary 20 percent pay cut.
Fiat Chrysler said on March 16 it was suspending production at most of its European plants until March 27 because of the pandemic. Also, plants across Canada and the United States are to remain closed at least until April 14, with the exception of the Mopar Parts Distribution Centers, which will continue to operate with paid volunteers.
It listed six plants in Italy and one each in Serbia and Poland set for closure.
Declining automotive sales and massive global disruptions caused by the pandemic have cast doubt over Fiat Chrysler’s pending merger with PSA Group.