The European Investment Bank (EIB) on Tuesday approved loans worth EUR866m to European-based car makers to help design and build cleaner cars with lower CO2 emissions.
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The loans include EUR400m to Nissan’s European operations to develop and build more fuel-efficient vehicles in the United Kingdom and Spain, and GBP340m (EUR366m) to Jaguar Land Rover to help cut vehicle emissions.
A loan was also approved for a Volkswagen plant in India, which will produce small cars that meet tougher emissions requirements ahead of their introduction in major Indian cities from 2010.
The latest loans add to the EUR3.6bn approved since last December for European car and truck makers.
Further loans planned for submission to the bank’s board in May and June would reach an even wider range of beneficiaries, including component suppliers, and bring total approved lending to the motor industry to more than EUR7bn since last December, when the EIB launched a support package to aid Europe’s economic recovery from the current crisis, the bank said in a statement.
Some 63% of the lending approved today for the motor industry will be provided under the EIB’s European Clean Transport Facility (ECTF). The facility, part of the EIB’s wider response under the European Economic Recovery Package, targets significant cuts in vehicles’ CO2 emissions through research, development and innovation, as well as the production of cleaner and more fuel-efficient cars and other transport.
The balance, which is also aimed at safer, smaller and more fuel-efficient cars, will be provided under the EIB’s convergence objective to support Europe’s less affluent regions, and its external lending mandate for Asia and Latin America.
The EIB has signed loans with BMW, Renault and Volvo Trucks since they were approved at the last board meeting on 12 March.
Under the broad economic recovery package announced in December, the EIB is raising its total lending by EUR15bn per year for both 2009 and 2010 compared to previous years. The increase is directed at three main areas: helping small and medium-sized enterprises (SMEs) and mid-cap firms, supporting Europe’s convergence regions and contributing to the fight against climate change (including the ECTF). The EIB is already well on its way to achieving the objectives set by EU member states.
