* To seek 600 million euro loan from EIB, up from 500 mln
* Has restarted talks with Swedish government on guarantees
STOCKHOLM, Aug 31 (Reuters) - Swedish carmaker Volvo Cars, owned by Chinese group Geely Automobile 0175.HK, wants a bigger European Investment Bank loan than previously planned, 600 million euros ($758 million) rather than 500 million.
Volvo Cars also said on Tuesday it had restarted talks with Sweden about a government guarantee for the EIB loans which will be used to develop environmentally friendly vehicles.
The company was granted an initial 200 million euro loan in March 2009 but its takeover by Geely put talks about a guarantee on hold ahead of the deal’s completion.
“Volvo Cars has resumed the talks with the Swedish National Debt Office regarding having the government guarantee these EIB loans,” spokesman Per-Ake Froberg said.
“Time has gone by, so we are now talking about a different timeframe. Instead of 2009 to 2012, this now concerns projects running from 2010 to 2013 and that effects the sum we are borrowing.”
Zhejiang Geely, parent of Hong Kong-listed Geely completed the purchase of Volvo Cars from U.S. parent Ford Motor Co F.N earlier this month, paying $1.3 billion in cash and issuing Ford a $200 million note. [ID:nTOE67103B]
Geely said earlier this year it remained open to a possible EIB loan though it had all financing in place for the takeover of the Swedish carmaker, the biggest overseas purchase by a Chinese company in the automotive sector. [ID:nLDE62R08N]
Carmakers across Europe called for loans backed by governments to help them develop less-polluting vehicles as the global financial crisis left many of them fighting for survival in the face of weaker demand and mounting development costs.
(Reporting by Niklas Pollard; Editing by Dan Lalor)
($1 = 0.7911 euro)
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