The European Investment Bank and PSA Peugeot Citroën signed a €200-million (US$259-million) loan agreement to finance the carmaker’s program to develop plug-in hybrid vehicles.
Representing a total outlay of €400 million (US$518 million), the plug-in hybrid program aims to develop multi-purpose vehicles that combine the advantages of a diesel engine on the highway and those of an electric motor for city driving. Five hundred PSA Peugeot Citroën employees are working on the project, which will be developed entirely in France, at the Velizy Technical Centre.
The loan was granted under the European Clean Transport Facility (ECTF) financing program, one of the EIB’s measures for stimulating the European economy. The ECTF aims to significantly reduce automotive CO2 emissions through R&D and innovation and encourage the production of cleaner, more fuel-efficient cars, trucks and other vehicles.
Since December 2008, the EIB has granted €8.6 billion in loans to carmakers and automotive equipment manufacturers. Of that figure, €6.7 million was granted under the ECTF financing programme, including €600 million to PSA Peugeot Citroën.
The European Investment Bank was created by the Treaty of Rome in 1958 as the European Union’s long-term lending bank. The Bank’s objective is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. The EIB raises funds on the capital markets, which it lends on favorable terms to projects furthering EU policy objectives. The EIB continuously adapts its activity to developments in EU policies.