Fiat Chrysler, Peugeot Decide To Withhold 2019 Dividend Payout
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The boards of automakers Fiat Chrysler Automobiles N.V. and Peugeot S.A said on Wednesday it would not pay an ordinary dividend for 2019 this year due to a collapse in consumer demand resulting from the COVID-19 pandemic.
The health crisis has thrown the global auto industry into the worst tailspin since the 2008-09 financial crisis. Consumer demand for vehicles has plummeted as governments across Europe and the United States have enforced lockdowns.
Fiat has already finalized a plan in overnight talks with Renault, and the deal would be discussed at a meeting of Renault’s board on Monday.
The two companies also confirmed that preparations for their merger are advancing with respect to antitrust and other regulatory filings.
Questions & Answers
Q.Why are Fiat Chrysler and Peugeot not paying an ordinary dividend for 2019?
Why are Fiat Chrysler and Peugeot not paying an ordinary dividend for 2019?
The boards of both automakers decided against the payout due to a collapse in consumer demand. This significant drop in demand is a direct result of the COVID-19 pandemic and associated government lockdowns.
Q.How severe is the current downturn for the global auto industry?
How severe is the current downturn for the global auto industry?
The article states the health crisis has caused the worst downturn since the 2008-09 financial crisis. Consumer demand for vehicles has dramatically plummeted as governments implemented lockdowns across Europe and the United States.
Q.What is the status of Fiat Chrysler's merger preparations?
What is the status of Fiat Chrysler's merger preparations?
Preparations for the merger between Fiat Chrysler and Peugeot are advancing, particularly concerning antitrust and other regulatory filings. Fiat has also finalised a plan with Renault, to be discussed on Monday.
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