Göteborg, Sweden – Volvo Car Corporation has received a 3.55 billion Swedish kronor loan from the European Investment Bank (IEB). The loan was made possible following a decision on loan guarantees issued by the Swedish government.

“This is highly welcome news which will secure jobs and investments in Sweden as well as strengthen the future competitiveness of Volvo Car Corporation,” said Stefan Jacoby, president and CEO of Volvo Car Corporation.

The funding will be used in Göteborg and Skövde to develop and manufacture new engines and other technology with a clear environmental profile. The loan term is for seven years and conditions are in line with the EU Commission’s Temporary Framework for state support to the automobile industry.

Connect with Autos.ca