EU Approves 500 Million Euro Loan for Volvo

Swedish automaker Volvo has just received a 500 million euro loan from the European Investment Bank which will allow the company to continue its green efforts and finance a project to develop low-emission vehicles. According to a report by AP, the money will be guaranteed by the Swedish government and will be used over the next two years.

Volvo last week announced that it plans to debut a plug-in hybrid model by 2012 that would drastically reduce the fuel consumption average of the whole product range belonging to the company. Furthermore, several other fuel efficient models are expected to be released in the years to come, Volvo said.

"There is no doubt that the environmental issue is at the very top of Volvo Cars' product development agenda right now," says Stephen Odell, President and CEO of Volvo Cars. "Carbon dioxide emissions from our cars will be drastically reduced by the plan we are now implementing and our aggressive electrification strategy will put us in a leading position when it comes to environmentally optimised passenger transport."

Volvo has already joined forces with Swedish energy company Vattenfall to develop the 2012 plug-in hybrid. The manufacturer says the cars will be powered by both electricity and diesel, with Vattenfall to develop charging systems and electric systems for Volvo's vehicles.

"We want to reinforce electricity's importance in society and its key role in solving climate issues. Through this cooperation we hope to be able to speed up the introduction of electric cars. Together we are developing the next-generation technology based on plug-in cars and various charging alternatives," says Lars G Josefsson, President and CEO of Vattenfall.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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