Volvo’s €420 Million EIB Deal Fuels Shift to Electric Vehicles

Volvo Car Corporation and the European Investment Bank (EIB) have agreed on a €420 million financing deal to support Volvo’s shift to fully electric and carbon-neutral vehicles. This initiative aligns with the European Union’s green transition goals, aiming to reduce emissions from road transport.

The funding will aid in developing a new electric car platform, research and development, and implementing eco-friendly manufacturing technologies. The project aims to create safer and more sustainable electric vehicles with reduced weight and faster charging, making them more accessible to buyers. The EIB supports this effort for a swift global transition to a net-zero economy.

EIB Vice-President Thomas Östros said in a statement:

“I think Sweden can be proud of the leading role Volvo Cars is taking in making the automotive industry more sustainable. Making cars that run on electricity instead of fossil fuels is only one part of the puzzle. The industry itself is still very carbon-heavy, something that Volvo Cars is actively working on changing. As the EU climate bank, this is one of the many facets in the green transition that we are financing, and we’re glad to partner with Volvo Cars to accelerate the change.”

CFO of Volvo Cars Johan Ekdahl added:

“Volvo Cars continues to work diligently towards the ambition of becoming a climate-neutral company by 2040. One way in which we are aiming to do that is by eliminating tailpipe emissions from our model line-up and investing towards becoming a fully electric car company by 2030. We have a long-term relationship with the EIB and are happy that they continue to support us on that exciting transformation journey.”