Volvo is getting a massive €420 million ($460M) loan as the automaker moves to a fully electric future by 2030. The funds are for Volvo to develop a new EV platform for its next-gen models.
Volvo gets €420 million loan for a new EV platform
Volvo and the European Investment Bank (EIB), the EU’s funding arm, signed a €420 million ($460M) financing agreement Thursday.
The funding will be used for building a new EV platform, including the necessary research and development that comes with it. It will also support advanced manufacturing tech for an efficient rollout.
The project is expected to result in “even safer and more sustainable” EV tech, according to the EIB. This includes faster charging and reducing vehicle weight. These two factors alone can help drive EV adoption.
“I think Sweden can be proud of the leading role Volvo Cars is taking in making the automotive industry more sustainable,” EIB vice president Thomas Östros explained.
Volvo was one of the first legacy automakers to commit to an all-EV future by 2030. “There is no long-term future for cars with an internal combustion engine,” Henrick Green, Volvo’s CTO, proclaimed in 2021.
The automaker’s early commitment is paying off. Volvo expects “strong double-digit” sales growth this year. Volvo’s EVs have been a bright spot as demand continues building for the C40 compact SUV and new EX30 crossover.
Despite the EX30’s compact size (see our review), Volvo expects to see significant demand for the EV that starts at around $35,000.
Volvo is entering a new market as the EX30 targets younger buyers with a fun, zippy ride and classic Scandinavian touch.
Volvo also launched its first three-row electric SUV, the EX90, which will hit the market early this year. It will feature up to 300 miles range with a $76,695 starting price in the US.
By 2025, Volvo aims to sell around 600K EVs, or about half of its total 1.2M vehicle sales, as it works to go 100% electric by 2030.
When asked about a “reported slowdown” last month, Rowan responded, “We are not seeing any order cancellations or any slowdown in order intake.”
Volvo expects to accelerate its momentum with two new EVs in key segments this year.
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