The European Investment Bank (EIB) has approved loans to European-based car makers SAAB Automobile AB and Renault worth a total of €600m.
A €400m loan for SAAB Automobile AB 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, subject to the European Commission’s approval of the Swedish state guarantee.
The main part of the loan, €320m of the €400m approved for SAAB, will be provided by the EIB’s European Clean Transport Facility (ECTF).
The ECTF, which is part of the Bank’s response under the European Economic Recovery Package, targets significant cuts in vehicles’ CO2 emissions through research, development and innovation, the production of cleaner and more fuel-efficient means of transport, and also through tangible fixed assets in related infrastructure and production plants.
The remaining €80m is aimed to help SAAB improve the active and passive safety of its future vehicles.
Through the other loan, Renault will receive €200m to support a new production facility near Tangiers, Morocco, for manufacturing smaller cars, including the design, civil engineering, purchase of equipment and tooling of the new factory.