EIB and PSA Peugeot Citroën Sign €200 Million Loan Agreement for the Development of Plug-In Hybrids

AUTO CENTRAL – July 19, 2010: Philippe de Fontaine Vive, Vice-President of the European Investment Bank, and Frédéric Saint Geours, Executive Vice President of Finance and Strategic Development at PSA Peugeot Citroën, have signed a €200-million loan agreement to finance the carmaker’s programme to develop plug-in hybrid vehicles. Representing a total outlay of €400 million, the programme is part of the Group’s ongoing investment in R&D and is also aligned with the EIB’s commitment to promoting sustainable development.

The project is designed to develop a new technology that will enable PSA Peugeot Citroën to maintain its lead in the reduction of CO2 emissions.

By leveraging plug-in hybrid technology, the Group 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.

“I am very happy to be signing this financing agreement with PSA Peugeot Citroën today,” said Philippe de Fontaine Vive, Vice-President of the EIB. “The EIB loan perfectly illustrates Europe’s commitment to promoting innovation and sustainable development in the automobile industry to enable the development of clean, fuel-efficient vehicles. Our objective is to help carmakers to significantly improve their vehicles’ energy efficiency while reducing their carbon footprint. By providing the necessary financing, we’re helping to build a better future.”

The loan is the latest event in the high-quality partnership forged between PSA Peugeot Citroën and the EIB over more than 25 years. It 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 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.