The EIB is extending a loan of 2 billion SEK to AB Volvo Group to support research, development and innovative downstream investments being implemented principally at the Group's R&D facilities in Göteborg. AB Volvo is one of the world's leading manufacturers of heavy commercial vehicles and diesel engines. Substantial investment in R&D and innovation allows Volvo continuously to enhance productivity, product quality and product range.
The financing of Volvo falls within the EIB's objective to strengthen the competitiveness of the EU industry in general and complies in particular with the Lisbon Strategy, which is committed to take forward the conclusions of the Lisbon European Council, aimed at fostering the development of a knowledge and innovation-based European economy. Over a period of ten years, the Bank will have made available over EUR 50 billion in support of the Lisbon Strategy, confirmed in the Growth Initiative endorsed by the December 2003 European Council.
Volvo has a strong track record in R&D and its application to products. The project involves R&D for core drive train components (engines, transmissions, axles) including fuel consumption and emission characteristics of diesel engines enabling conformity with upcoming Euro-4 standards applicable in 2005 and aiming to introduce technologies and products with the potential of complying with Euro-5 standards, likely to come into force in 2008. It also covers aspects of vehicle structure and safety. The EIB is therefore pleased to co-operate with this core industrial group in the Nordic area by providing long-term funds on beneficial terms and conditions.
The EIB's cumulative investments in Sweden stand at EUR 6.9 billion and relate principally to transportation infrastructure, the environment and telecommunications.