Geely-owned Volvo seeks €600 million EIB loan

Filed under: Europe, Government/Legal, Volvo, Earnings/Financials, Geely

2011 Volvo S60

2011 Volvo S60 – Click above for high-res image gallery

Volvo received a €200 million loan from the European Investment Bank in March of this year, and sought another €300 million to cement its finances as it navigated the process of being sold by Ford. The rest of the funds were put on hold as Ford concluded the deal with China’s Geely, but now that the sale is complete Volvo is ready to take delivery of the additional sum.

Geely-owned Volvo has revised its product timeline compared to when when it first applied for EIB assistance, however. As a result, it now seeks €600 million. At the moment, the process is on hold while Geely discusses loan guarantees with the Swedish government, but perhaps that extra dosh – assuming it’s approved – will help pay for Volvo’s 7 Series and S-Class competitor.

Gallery: 2011 Volvo S60

[Source: Reuters]

Geely-owned Volvo seeks €600 million EIB loan originally appeared on Autoblog on Sat, 11 Sep 2010 14:12:00 EST. Please see our terms for use of feeds.

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