Fiat Chrysler Automobiles NV is in talks to obtain an Italian state-backed credit line of about 6.3 billion euros ($6.8 billion) to buttress the carmaker’s finances after the coronavirus caused a steep downturn, according to one of its workers’ unions.

The company’s Italian unit is in discussions with Intesa Sanpaolo SpA as the lead lender, the FIM-Cisl union said in a statement. Bloomberg reported on the talks on Friday. The company has discussed liquidity measures or a three-year loan, the union said.

Sace SpA, Italy’s trade-credit insurer, will provide a public guarantee for 80% of the amount, they said. The guarantee would need to be granted in a decree by the Finance Ministry, people familiar said on Friday.

The Italian-American carmaker is seeking to shore up liquidity after burning through $5.5 billion in the first quarter while its North American plants were shuttered and new-car demand stalled. Fiat Chrysler and French peer PSA Group decided earlier this week to scrap the 1.1 billion-euro dividends that each agreed to pay as part of their merger agreement, citing the negative impact of the coronavirus pandemic.

The Fiat Chrysler loan would be the largest financing guaranteed by a European government during the pandemic. Renault SA’s struck a 5 billion-euro deal last month.

Fiat Chrysler has already raised almost 10 billion euros to help it weather the crisis. Earlier, it took out a new, 3.5 billion-euro loan and drew down 6.25 billion euros from an existing revolving facility.

The loan involves the carmaker’s Italian business only, and will be used to pay suppliers and support the reopening of production, according to the union.

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