European Investment Bank supports Volvo Group’s research for fuel efficiency and safety in trucks, buses, and construction equipment
On Thursday, the European Investment Bank (EIB) and Volvo Treasury AB Sweden, a subsidiary in the Volvo Group, have completed a EUR 600 million loan agreement. The financing will be used for research, development and innovation (RDI) investments in fuel efficiency and safety related to trucks, buses and construction equipment.
Fuel costs account for about a third of the operational costs of truck operators, putting fuel efficiency high on the agenda in the sector. Volvo Group will use to EIB loan to finance research into making its engines more fuel efficient. Related to this research, the company will also finance selected RDI investments towards reducing pollutant emissions and further improving the safety features. Yesterday’s signature in Göteborg finalised an agreement first signed late last year for two tranches of EUR 300 million each.
“Volvo Group is already well-known for efficiency and safety.” said Romualdo Massa Bernucci, Director for EIB lending in the Nordic countries. “And that’s why we are particularly proud to support Volvo in taking this even further and making their vehicles more environmentally friendly.”
“The loan from EIB will further strengthen our ability to invest in strategic areas to create more sustainable transports,” says Christer Johansson, SVP Investor Relations at Volvo Group.
While the R&D projects is expected to lead to increased fuel efficiency and reduction of emissions, the research will also focus on the development of electrified powertrains, active safety systems, and new ways of providing efficient transport. The activities will be carried out primarily in the Volvo Groups technical centres in Sweden and France, preserving skilled R&D employment and knowledge in Europe.