The European Investment Bank (EIB) has loaned PSA Peugeot Citroën €200m (£170m) to finance the carmaker’s programme to develop plug-in hybrid vehicles.
With the money, the company 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.
500 PSA Peugeot Citroën employees are working on the programme, which will be carried out in France, at the Velizy Technical Centre.
The loan was granted under the European Clean Transport Facility (ECTF) financing programme, one of the EIB’s effective measures for stimulating the European economy.
The ECTF aims to reduce automotive CO2 emissions through R and D and innovation, and encourage the production of cleaner, more fuel-efficient cars, trucks and other vehicles.
Since December 2008, the EIB has granted €8.6bn in loans to carmakers and automotive equipment manufacturers. Of that figure, €6.7m was granted under the ECTF financing programme, including €600m to PSA Peugeot Citroën.