Volvo may be headquartered in Sweden but the Ford -owned automaker is seeking loan guarantees from the Belgian government. In all, Volvo is seeking between $280 million and $420 million from the Belgian region of Flanders.
According to Automotive News, Volvo CEO Stephen Odell and Flemish Premier Kris Peeters met earlier this week to discuss the possible loans. Both sides reportedly agreed to form a group to further explore the possible loans.
Volvo has already received more than $277 million in loans from the European Investment Bank – the European Union’s financial arm – for the development of greener vehicles, but is seeking at least another $670 million. Volvo’s home country of Sweden has yet to guarantee any loans for the ailing automaker.
Volvo is seeking loans from Belgium as one of its biggest plants is located there. “We are not going to give guarantees for factories anywhere other than in Flanders,†Peeters said. “So firm commitments must be made and certainly Volvo’s long-term future must be assured before we can give guarantees.”
Volvo’s Ghent plant employs 4,000 workers and produced 180,000 Volvo vehicles last year.
