Analysts have raised concerns about Fiat's growing debt pile and its ability to fund a strategy that will shift the automaker's focus to its upscale Maserati and Alfa Romeo brands from an over-reliance on low-margin mass-market models.
Responding to a request for clarification from market regulator Consob, Fiat said that beyond the cap, dividend payments were also subject to the condition that Chrysler's liquidity exceeds a threshold of $3 billion. It said Chrysler's liquidity totalled $14.7 billion at the end of 2013.
Fiat also said intercompany financing was limited by covenants that require deals to be approved by a majority of "disinterested" members of the Chrysler board of directors.
Fiat said it had enough resources to fund its activities, however.
"On the basis of the group's available liquidity, credit lines in place and available for investment in industrial activities, in addition to the ability to access capital markets ... the group believes its capital resources are more than adequate to meet the projected funding requirements," it said in a statement.
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