EIB loan to Volvo Car Corporation secures jobs and investments in Sweden
On Wednesday 22 December, Volvo Car Corporation got the go-ahead for a 3.55 billion Swedish kronor loan from the European Investment Bank (EIB).
The loan was made possible following a decision on loan guarantees issued by the Swedish government.
"This is highly welcome news which will secure jobs and investments in Sweden as well as strengthen the future competitiveness of Volvo Car Corporation" says Stefan Jacoby, President and CEO of Volvo Car Corporation.
The funding will be used in Göteborg and Skövde to develop and manufacture new engine generations and other technology with a clear environmental profile. The loan will ensure that Volvo Cars reaches its ambitious targets for cutting carbon dioxide emissions.
The loan term is 7 years and the conditions are in line with the EU Commission's Temporary Framework for state support to the automobile industry.
"This loan will give us enhanced financial stability and flexibility, allowing us to deliver on our ambitious growth plan. I would like to thank the Swedish National Debt Office for the constructive spirit in which the negotiations were undertaken, as well as the Swedish government for its support," says Hans Oscarsson, acting CFO of Volvo Car Corporation.