EIB Approves Loans for Euro Automotive Fuel Efficiency, Safety
October 23, 2009 // Published as a news service by IHS
On Oct. 21, the European Investment Bank (EIB) approved additional loans to European-based car makers totaling €600 million.
One of the new loans, given to SAAB Automobile AB for €400 million, will be used for research and development activities for the improvement of fuel efficiency and safety, including new tooling for the production of cleaner and safer cars.
Another loan, given to Renault for €200 million, will support a new production facility near Tanger, Morocco, for the manufacture of smaller cars, including the design, civil engineering, purchase of equipment and tooling of the new factory.
Since December 2008, the EIB has approved loans to automotive manufacturers and suppliers worth €7.56 billion, of which €4.52 billion is under the EIB's European Clean Transport Facility (ECTF).
The ECTF, part of the EIB's wider response under the European Economic Recovery Package, targets significant cuts in vehicle carbon dioxide (CO2) emissions through research, development and innovation.
The ECTF also targets the production of cleaner and more fuel-efficient cars and other transport through tangible fixed assets in related infrastructure and production plants.
Of the €400 million newly ear-marked for SAAB, €320 million will be provided under the ECTF. The remainder is intended to help SAAB improve the active and passive safety of its future vehicles. The SAAB loan is subject to approval by the European Commission (EC) of the Swedish state guarantee.
So far in 2009, €3.6 billion has been disbursed to the European automotive sector. It is forecasted this figure will reach around €6 billion by the end of the year, and further loans are expected in 2010.
Background
The European Investment Bank was created by the Treaty of Rome in 1958 as the long-term lending bank of the European Union (EU). The task of the EIB is to contribute towards the integration, balanced development, and economic and social cohesion of the EU member states. The EIB raises a substantial volume of funds on the capital markets, which it then lends on favorable terms to projects furthering EU policy objectives. The EIB continuously adapts its activity to developments in EU policies.
Source: European Commission (EC).