Volvo has secured a EUR245m (US$286m) loan from the European Investment Bank (EIB) for its research and development programme.
The initiative includes the development of more energy-efficient engines, electric cars and improved safety, navigation and driver-assistance facilities.
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“The Investment Plan for Europe is boosting innovation throughout Europe and [the Volvo] announcement is yet another example,” said European Commission vice-president responsible for Jobs, Growth, Investment and Competitiveness, Jyrki Katainen.
“The research and development project by Volvo will push the boundaries of automotive technology in Europe and take us another step closer to a low carbon economy.”
The deal through the European Fund for Strategic Investments (EFSI) comes after the Council gave its formal green light to EFSI 2.0 – the extension and strengthening of the EFSI.
As a next step, the Regulation will go to a plenary vote in the European Parliament.
The EIB is particularly active in the automotive sector, having in the last 12 months also approved R&D loans to FCA and Valmet.
