EIB provides €245m loan to Volvo Car’s R&D programme

The European Investment Bank (EIB) has signed a €245m loan agreement to support Volvo Car’s research and development (R&D) programme that would help enhance road safety.

Under the deal, EIB will help the vehicle manufacturer to carry out R&D activities in connectivity, efficient petrol hybrid engines, longer-range electric cars and advanced driving assistance systems.

The loan transaction was conducted through the European Fund for Strategic Investments (EFSI), which was founded by the EIB Group and the European Commission (EC) to bolster the competitiveness of the European economy.

EIB vice-president Alexander Stubb said: “We are happy to support a European car maker in addressing the disruptive technology shifts towards e-mobility and autonomous driving.

“Volvo Cars’ R&D projects will contribute to making their cars safer, cleaner and greener, which benefits us all.”

The loan amount will be used to finance four R&D projects.

The first project involves the development of new energy-efficient engines and is related to petrol-operated engines only, while the second aims at improving the active safety systems and functions such as collision avoidance and upgraded driver assistance features.

The third project deals with the development of a new connectivity and infotainment platform, which will introduce a new emergency call feature, and improved navigation, and the fourth project focuses on the production of a new ‘Battery Electric Vehicle’ by 2019.

European Commission vice-president Jyrki Katainen said: “This R&D project by Volvo will push the boundaries of automotive technology in Europe and take us another step closer to a low carbon economy.”

Carried out in Volvo Cars’ technical centres in Sweden, the new projects will be developed for autonomous or semi-autonomous vehicles.

In addition, the EIB-supported R&D programme will help Volvo Cars comply with CO₂ requirements and regulations beyond 2020.