Volvo scores large practically half a billion mortgage for its new EV platform

Volvo is getting a large €420 million ($460M) mortgage because the automaker strikes to a completely electrical future by 2030. The funds are for Volvo to develop a brand new EV platform for its next-gen fashions.

Volvo will get €420 million mortgage for a brand new EV platform

Volvo and the European Funding Financial institution (EIB), the EU’s funding arm, signed a €420 million ($460M) financing settlement Thursday.

The funding might be used for constructing a brand new EV platform, together with the required analysis and growth that comes with it. It’s going to additionally help superior manufacturing tech for an environment friendly rollout.

The challenge is predicted to end in “even safer and extra sustainable” EV tech, in accordance with the EIB. This contains quicker charging and decreasing car weight. These two components alone may also help drive EV adoption.

“I feel Sweden will be pleased with the main position Volvo Automobiles is taking in making the automotive business extra sustainable,” EIB vp Thomas Östros defined.

Volvo was one of many first legacy automakers to decide to an all-EV future by 2030. “There isn’t a long-term future for automobiles with an inner combustion engine,” Henrick Inexperienced, Volvo’s CTO, proclaimed in 2021.

The automaker’s early dedication is paying off. Volvo expects “sturdy double-digit” gross sales progress this yr. Volvo’s EVs have been a vivid spot as demand continues constructing for the C40 compact SUV and new EX30 crossover.

Regardless of the EX30’s compact dimension (see our assessment), Volvo expects to see important demand for the EV that begins at round $35,000.

Volvo is getting into a brand new market because the EX30 targets youthful consumers with a enjoyable, zippy experience and basic Scandinavian contact.

Volvo additionally launched its first three-row electrical SUV, the EX90, which can hit the market early this yr. It’s going to characteristic as much as 300 miles vary with a $76,695 beginning worth within the US.

By 2025, Volvo goals to promote round 600K EVs, or about half of its whole 1.2M car gross sales, as it really works to go 100% electrical by 2030.

When requested about a “reported slowdown” final month, Rowan responded, “We aren’t seeing any order cancellations or any slowdown so as consumption.”

Volvo expects to speed up its momentum with two new EVs in key segments this yr.

Supply: EIB