/ News, Volvo / Volvo gets $1.2 billion loan from China Development Bank

Volvo gets $1.2 billion loan from China Development Bank

Linked In Share
Volvo gets $1.2 billion loan from China Development Bank

Volvo Car Corporation will receive a €922 million ($1.2 billion) loan from China Development Bank to repay its debt, the Swedish carmaker announced on Thursday.

The Chinese-owned carmaker hopes for more loans to help finance the investment needed to double its sales. As a second step under the loan agreement, Volvo spokesman Per-Ake Froberg said that the carmaker hopes to secure credits to be used to help finance investments amounting to $11 billion, half of which will be spent on a production upgrade in Sweden. The first loan matures in 2020.

Volvo, which has reduced production at its main plants in response to weakening demand in Europe, announced plans to invest $11 billion in its drive to double total sales to 800,000 vehicles by 2020. “We are developing an entirely new vehicle architecture that will be very important and that will of course need to be financed,” Froberg was quoted as saying by Reuters.

Owned by Zhejiang Geely Holding Group, Volvo says the investment will cut costs and increase sales. Volvo CEO Hakan Samuelsson said last week there are no positive signals in Europe, while North America is „coming back” and that China continues to grow, albeit slower than before.

by Dan Mihalascu (my Google+) - Thursday, December 13th, 2012 - filed under News, Volvo. Image credit: .
Linked In Share
Related Articles
bank loans china development bank Hakan Samuelsson investment plan sweden sweden auto industry swedish carmaker Volvo volvo car volvo car corporation Zhejiang Geely


Discuss: Volvo gets $1.2 billion loan from China Development Bank

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Toyota wants to further lower fuel cell powertrain cost
Toyota wants to further lower fuel cell powertrain costAccording to Toyota Motor Corp.'s lead fuel cell engineer, the automaker’s main concern when it comes to the green technology ...
[VIDEO] 2016 Nissan Titan teased
[VIDEO] 2016 Nissan Titan teasedThe Japanese based automaker Nissan has recently released the first teaser video with the upcoming 2016 Titan, which might be ...
McLaren P1 totally ruined in Dallas
McLaren P1 totally ruined in DallasA McLaren P1 hybrid supercar has recently met its end in Dallas after it has been severely crashed. Owning your dream car can ...
Japan: tests show Takata airbags not involved in recalls can still rupture
Japan: tests show Takata airbags not involved in recalls can still ruptureAutomakers could soon be forced to expand even more their recalls of Takata Corp airbags – already tied to five deaths – as ...
BMW 3-Series Plug-in Hybrid prototype shown
BMW 3-Series Plug-in Hybrid prototype shownThe BMW 3-Series Plug-in Hybrid prototype has been recently unveiled, during the Group Innovation Days 2014. BMW’s newest ...
Mercedes has one hot-selling compact range
Mercedes has one hot-selling compact rangeThe third-largest premium automaker in the world, Daimler AG’s Mercedes-Benz just showed the first pictures and revealed the ...
US: new recalls show Takata crisis is far from containment
US: new recalls show Takata crisis is far from containmentAt least 16 million cars have been recalled worldwide – with more than 10 million units in the US alone – because of ...
Porsche SE could face linked lawsuits under German class-action law
Porsche SE could face linked lawsuits under German class-action lawThe holding company has been facing numerous long-running suits brought on by disgruntled investors over the company’s botched ...
US: Chrysler says Takata-related recalls would start earlier than planned
US: Chrysler says Takata-related recalls would start earlier than plannedAccording to the company, the Chrysler Group LLC has decided to send out recall notifications to owners of autos that have ...
China: study sees the wealthiest people buying Mercedes-Benz models
China: study sees the wealthiest people buying Mercedes-Benz modelsAccording to a new brand research study conducted in China, the world’s largest auto market and the second-biggest when judging ...
BMW plans to shrink Mini range
BMW plans to shrink Mini rangeThe German automaker, the largest premium carmaker in the world has announced a strategy for its British Mini marquee that ...
BMW against Germany upholding strategy for quota of board women
BMW against Germany upholding strategy for quota of board womenBayerische Motoren Werke AG – the world’s largest luxury automaker – alongside other important industrial companies in ...
Report – Honda recalled Takata-equipped cars back in 2002
Report – Honda recalled Takata-equipped cars back in 2002According to documents seen by Reuters, the third-largest Japanese automaker – Honda – also the biggest client for auto ...
Rosberg ‘not angry’ with Mercedes after title loss
Rosberg ‘not angry’ with Mercedes after title lossNov.27 (GMM/Inautonews.com) Nico Rosberg insists he is "not angry" with Mercedes after technical trouble ended his world ...
Vettel to take Italian language lessons – report
Vettel to take Italian language lessons – reportNov.27 (GMM/Inautonews.com) Sebastian Vettel will take private lessons in Italian as he gets up to speed with life at ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

mclaren p1 crash dallas 1
BMW 3-Series Plug-in Hybrid 1
Ferrari LaFerrari XX 1
2016 porsche 911 turbo 1
ford mustang shelby gt350 convertible 1
SsangYong Tivoli 1
porsche macan s diesel techart tuning 1
skoda fabia customizable dashboard 1
Subaru Forester tS 1
audi rs6 avant tuning vilner 1
hyundai grand i10 1
mclaren p1 china 1

More automotive from inautonews
According to Toyota Motor Corp.'s lead fuel cell engineer, the automaker’s main concern when it comes to the green technology is finding ways to trim down the cost of the next generation hydrogen-fueled powertrain. The world’s largest carmaker, also the leading authority when it comes to ...
read more
Inautonews Editors Section
Test Drive: Ford Fiesta ST
Test Drive: Ford Fiesta ST The current generation of the Ford Fiesta ST has been officially presented to the public back in March, 2012, during the Geneva Motor Show, and it ...
Test Drive: Renault Twizy – Back to basics
Test Drive: Renault Twizy – Back to basics Renault has been producing the Twizy for a couple of years now, in its Valladolid, Spain, facility but spotting one on European roads can turn out ...
Test Drive: Mercedes-Benz SL400
Test Drive: Mercedes-Benz SL400 The Mercedes-Benz SL is currently in its sixth generation and since the company has released a new entry-level, the SL400, which is basically the ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Japan: tests show Takata airbags not involved in recalls can still ruptureAutomakers could soon be forced to expand even more their recalls of Takata Corp airbags – ... US: new recalls show Takata crisis is far from containmentAt least 16 million cars have been recalled worldwide – with more than 10 million units in the US ...
Safety Section