Nissan, Land Rover and VW Receive EU Money

The European Investment Bank has just approved a loan package of up to 866 million euros ($1.2 billion) for Nissan, Land Rover and Volkswagen, with every cent to be used in green car development operations across Europe. Today's funding package is a part of the total 7 billion euro loan approved by the European Union to ailing automakers, Autonews reported today so more funds are expected to be directed to car manufacturers in the next few months.

Nissan will receive a total of 400 million euros to support its European operations and design new fuel-efficient models to be sold on the continent, the source added, with the United Kingdom and Spain the main countries to benefit from this matter. Furthermore, Land Rover will receive up to 366 million euros to continue European operations and direct its efforts towards the green car sector and reduce emissions of the next models as much as possible.

"A loan was also approved for a Volkswagen plant in India, which will produce small cars that meet tougher emissions requirements ahead of their introduction in major Indian cities from 2010," the European Investment Bank said.

Representatives of the EIB announced in mid-February that all money delivered to ailing automakers only come in the form of loans so every single cent has to be returned according to the contracts the companies sign.

"We are just giving out loans. We want our money back," EIB spokesman Rainer Schlitt was quoted as saying.

Moreover, EIB president Philippe Maystadt confirmed that automakers looking for money must present strong viability plans to make sure the Union will get its money back. “The EIB is not there to provide short-term liquidity. The EIB is not there to substitute for structural reforms that might be needed by some companies. I want to make clear our role is to support viable projects,” he said.
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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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