EU Approved Volvo Loan Guarantees
The European Commission has approved loan guarantees for Volvo Cars.
The 708 million dollars in borrowing from the European Investment Bank will be guaranteed by the Swedish government. Volvo, which is owned by Ford but largely based in Sweden, plans to use the money as part of a project to develop more fuel-efficient low-emission vehicles.
Volvo announced this week a joint venture to develop an electric-diesel hybrid car than can be charged from an ordinary wall socket.
"The state guarantees would contribute to Volvo's investment project for environmentally friendly cars without giving rise to any undue distortions of competition," EU Competition Commissioner Neelie Kroes said.
The loans and guarantees would be provided in five tranches from 2009 to 2010 with a maturity of seven years.