22 September 2018

Volvo Cars gets US$800 mln CDB loan, Reuters says

Volvo Cars, the Swedish automaker owned by Chinese manufacturer Zhejiang Geely Holding Group Co. Ltd., has signed a second loan agreement worth US$800 million with China Development Bank, Reuters reported on Monday, citing a statement from the carmaker. The loan, which will mature in 2021, will be used to further develop products and enhance its capital structure. The carmaker has been struggling to restore earnings since Geely bought it from Ford Motor Co. in 2010 for US$1.8 billion, the report said. Chief executive Hakan Samuelsson has forecast it will reach break-even this year after vehicle sales improved in the second half, it added.

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