Volvo Accepts $1.2 Billion Loan to Pay Debts

VolvoVolvoSweden, 1927 > present49 models
4535 photos
6 videos
has accepted a $1.2 billion (€922 million) loan from the China Development Bank to repay its debt. It is hoping for a further loan to invest in new cars. Volvo has until 2020 to pay back the loan. 

Volvo plans to invest $11 billion in new cars and upgrading factories in Sweden. The company's goal is to increase annual sales to 800,000 cars by 2020. 

"We are developing an entirely new vehicle architecture that will be very important and that will of course need to be financed," said Volvo Spokesman Per-Ake Froberg.

The new platform will debut on the next XC90Volvo XC90Sweden, 2002 > 201355 versions
67 photos
SUV in 2014. 

Volvo is focusing on North America and China because the European market is so negative at the moment.

Source: Automotive News Europe