Swedish automaker Volvo – now owned by the parent of China’s Geely – says that it is seeking an additional 100 million euros from the European Investment Bank in an effort to create and build more environmentally friendly new cars.
In total, Volvo is asking for 600 million euros – about $758 million. Before Ford sold Volvo to Geely earlier this summer, the Swedish automaker was approved for an initial 200 million euros to develop alternative fuel and electric vehicles. That loan, granted more than a year ago, was put on hold after word came that Ford was shopping for a buyer for Volvo.
“Volvo Cars has resumed the talks with the Swedish National Debt Office regarding having the government guarantee these EIB loans. Time has gone by, so we are now talking about a different timeframe,” said Per-Ake Froberg, a Volvo spokesperson. “Instead of 2009 to 2012, this now concerns projects running from 2010 to 2013 and that effects the sum we are borrowing.”
