Friday, 05 January 2024 11:17

Volvo Cars to go fully electric with European Investment Bank backing

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In line with the European Union’s push for a green transition, Volvo Car Corporation and the European Investment Bank (EIB) have signed a €420 million financing agreement in support of the Swedish carmaker’s decision to become fully electric and carbon neutral. The operation is expected to contribute to the decarbonisation of road transport, a major source of emissions and pollution globally.

  • Volvo Car Corporation has signed a €420 million loan agreement with the EIB for the development of a new all-electric vehicle platform.
  • The investments will cover research and development, software development and implementing next-generation manufacturing technologies for fully electric vehicles.
  • The financing supports the brand’s strategy to become a fully electric car manufacturer by 2030, while simultaneously aiming to lower barriers for e-vehicle adoption.

2024 01 05 111344The EIB’s funding will support the development of a new, fully electric car platform, as well as the necessary research and development and roll-out of resource-efficient, advanced manufacturing technologies for electric cars. The European Union has introduced progressively more stringent environmental regulations for road transport, with the aim of making all new passenger vehicles sold emissions free by the middle of the next decade.

The project is expected to result in even safer and more sustainable technologies for e-vehicles, including reduced weight and faster charging, which can help lower the barriers to purchasing an electric car. As such, the operation is fully in line with the EIB’s goal to finance a just and swift transition to a net-zero economy, both in Europe and across the world.

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.”

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Volvo Car Corporation has been active since 1927 and is headquartered in Gothenburg, Sweden.

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