French automobile manufacturer Renault has received a loan of EUR400m from the European Investment Bank (EIB).
The automaker is planning to invest the loan to complete the development of its third-generation car that will replace the current Twingo minicar and is expected to be launched in 2014.
EIB Vice-President Philippe de Fontaine Vive said the technologies are a spearhead for the future in terms of sustainable development and competitiveness.
"Through our innovation support, we prepare the future of the European automotive industry. And the primary beneficiaries will be the people in their daily lives," Fontaine Vive added.
According to the bank, the loan provided to the automobile manufacturer is part of its support for development of environmentally friendly and affordable vehicles in Europe.
Major part of the loan will be used to develop lightweight materials for the vehicles, which will reduce the cars' weight and improve its aerodynamics.
The new car is expected to have rear-wheel-drive platform and also include the new Smart ForFour, part of the partnership between Renault-Nissan and Daimler.
