The money are to be used, according to Volvo, to support the manufacturing plant in Ghent, Belgium. The loan has been granted for 5 years under the conditions set by the Temporary Framework for state aid measures of the European Commission.
"The loan secures investments and jobs in Ghent and provides Volvo Car Corporation with funding stability for car projects with industrialization in our Belgian factory. We want to thank ING for the constructive negotiations and the Flemish government for supporting us in this process", said Stefan Jacoby, Volvo Car Corporation CEO.
Specifically, Volvo has not detailed the car projects it will use the money for. The carmaker says the money will be used to secure the jobs in the aforementioned plant by investing in car projects and industrialization.
"The deal is a boost to the Ghent factory which is one of Volvo's major assembly sites, and to Flanders' industrial base. ING is proud to associate itself with one of Europe's successful car makers in this project of national and regional interest," added ING Commercial Banking head Philippe Masset.
Separately, Volvo announced last week it is getting ready a strategy for the Chinese market, one of major importance considering the passing of the company under the Chinese ownership of Geely. The details of the strategy are also unknown for the time being.
Google News