The Nordic Investment Bank (NIB) and the Volvo Car have signed a five-year loan agreement of SEK1bn (EUR102m) to finance the next phase of the company's R&D program.
The loan will support financing for the development of new modular engine technology aimed at improving vehicle performance and fuel economy.
The R&D programme is expected to promote skill development in Sweden’s automotive cluster, and generate synergies and benefits through knowledge transfer and cooperation between Volvo Cars' R&D centre in Gothenburg and local universities.
NIB President & CEO Henrik Normann said: “Volvo Cars is an industrial leader in the Swedish automotive industry.
"The company’s investment in technological innovation will support the competitiveness of the manufacturing process in the region.”
The Volvo Car Corporation has been in operation since 1927. Today, Volvo Cars is one of the most-well known car brands in the world.
During 2015, the company sold 503,127 cars in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010.
