Volvo Requests $626 Million Loan

Jan. 29, 2009

The majority of the rescue plan consists of Swedish government guarantees for loans from the European Investment Bank.

Volvo Cars, owned by Ford, has requested a loan of 475 million euros (US$626 million) from the European Investment Bank (EIB), the Swedish government said on Jan. 29.

"Volvo has requested a loan of around five billion kronor," the government said, adding that a final agreement including Swedish state guarantees for the loan was expected to be concluded by March.

Maria Bohlin, a spokeswoman for Volvo Cars, confirmed the size of the loan requested by the firm and said: "The negotiations will continue until a decision is taken" by EIB.

Around three-quarters of a rescue plan for the Swedish car industry amounting to 28 billion kronor consists of Swedish government gurantees for loans from the EIB.

Ford announced on Jan. 29 that Volvo Cars had a loss of $736 million in the fourth quarter.

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