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Volvo in Talks with Flemish Government

Published måndag 25 maj 2009 kl 11.07

Ford-owned Volvo Cars has announced it is intensifying talks with the Flemish government about a support for the former Swedish car brand. A company spokeswoman said Volvo chief executive Stephen Odell was to discuss potential guarantees from the Flemish government for loans from the European Investment Bank.

Talks with the Swedish government about guarantees for an approved $US 266 million loan from the European Investment Bank were postponed earlier this month, pending a sale of the Swedish brand. The company's largest production plant is located in Flanders and employs around 3,800 staff. The mother company Ford Motor has said it is conducting a strategic review which could lead to a sale of Volvo Cars. (ah)

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