Renault’s ambitious plans to develop and roll out electric vehicles worldwide are likely to be bankrolled by a EUR400m loan from the European Investment Bank (EIB).
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The money, a bank memorandum said, would fund around 40% of current EUR1bn Renault spending plans for developing electric vehicles and improving the environmental performance of conventional vehicles.
The EIB is the European Union’s (EU) largest financial institution and with its backing of member states and other EU institutions, it is likely to be a crucial lender in 2009 when private financing will be harder to secure. The EIB also usually lends at very competitive rates and over the long term.
This financing has yet to be formally approved by the bank’s board, but the application has cleared preliminary administrative hurdles and is expected to be authorised.
The bank’s memorandum said: “The project will contribute to extending [Renault’s] knowledge and know-how in the field of conventional and full electric powertrains, and will support the accelerated introduction in the market of low-carbon-emission vehicles. It is expected to bring about positive environmental results in terms of reduction of fuel consumption and CO2 and other harmful emissions.”
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By GlobalDataAlthough the investment would be focused initially on existing facilities, the project might also see Renault buying and developing new machinery and tools, it added.
The French car marker is involved in a number of initiatives to roll out electric cars, for instance agreements involving its partner Nissan and California-based electric grid developer Project Better Place to roll out infrastructure and vehicles in Denmark and Israel.
EU industry commissioner Günter Verheugen has also been pushing the EIB to invest in ‘green’ vehicle technology.
The EIB said of Renault’s plans: “The activities will have a positive environmental impact, resulting in substantial reductions in terms of vehicle emissions and fuel consumption.”
Keith Nuthall
