Aligned with the European Union’s commitment to a sustainable shift, Volvo Car Corporation and the European Investment Bank (EIB) have inked a €420 million loan agreement. This financial support reinforces the Swedish automaker’s resolve to transition entirely to electric vehicles and achieve carbon neutrality. Anticipated to play a pivotal role in reducing global emissions and pollution from road transport, the initiative is in sync with the EU’s stringent environmental standards for making all new passenger vehicles emission-free by the mid-2020s.
The EIB’s financial backing will facilitate the creation of a new, fully electric car platform, alongside supporting essential research, development, and implementation of resource-efficient, advanced manufacturing technologies for electric vehicles. Given the EU’s push for environmental regulations in road transport, the project aims to contribute to the sector’s decarbonization.
EIB Vice-President Thomas Östros said: “I think Sweden can be proud of the leading role Volvo Cars is taking in making the automotive industry more sustainable. Making cars that run on electricity instead of fossil fuels is only one part of the puzzle. The industry itself is still very carbon-heavy, something that Volvo Cars is actively working on changing. As the EU climate bank, this is one of the many facets in the green transition that we are financing, and we’re glad to partner with Volvo Cars to accelerate the change.”
CFO of Volvo Cars Johan Ekdahl added: “Volvo Cars continues to work diligently towards the ambition of becoming a climate-neutral company by 2040. One way in which we are aiming to do that is by eliminating tailpipe emissions from our model line-up and investing towards becoming a fully electric car company by 2030. We have a long-term relationship with the EIB and are happy that they continue to support us on that exciting transformation journey.”