Volvo Cars raises €500mn for EV platform R&D

Sino-Swedish automaker Volvo Cars has raised €500mn in green bonds, which the firm says will support research into EV platform innovations.

"The proceeds will be used to support Volvo Cars’ ambitions on electrification and to achieve net-zero greenhouse gas emissions by 2040," the firm says. "This includes funding research and development within electric car platform technologies and powertrains."

Volvo announced a new green financing framework in late April which sets out how the OEM can source funding from sustainable sources. The scheme "defines how green financing instruments are set up within Volvo Cars to financially accompany its sustainability journey towards its ambitions of becoming a fully electric car maker by 2030".

Volvo aims for all its outstanding debt to be linked to the initiative by 2025. The new bond will mature in May 2030.

Ahead of its plan to be an all-electric automaker by 2030, Volvo Cars has not made firm plans for new releases beyond its EX30, EX90 and EM90. CEO Jim Rowan has hinted, however, that electric versions of the firm's 60 premium sedan series could be on the way, as well as an estate body type EV.

Last month, Rowan promised that his firm "will announce more EV cars at the back end of this year, which will start production and sales in 2025 as well”.

Executive change

The firm has also announced three executive leadership changes focused around EV R&D and supply chain, as COO Javier Varela departs with immediate effect.

The new appointments are Erik Severinson as chief product and strategy officer, Anders Bell promoted to chief engineering & technology officer, with Francesca Gamboni becoming chief supply chain officer. 

Bell served six years as Tesla's senior director of engineering and, since late 2022, has been Volvo Cars' head of global R&D and engineering.

Gamboni joined Volvo in 2023, bringing with her over 25 years of manufacturing, supply chain and procurement experience, mainly in the automotive sector including previous roles at Stellantis, Bosch and Renault-Nissan, Volvo says.

A strong sales month in March saw Volvo Cars' B-segment EX30 e-SUV become the third best-selling BEV in Europe on the back of 8,000 unit sales, behind only Tesla's Model 3 and Y. The firm says it is on track to meet guidance of a 15-20pc gross margin on the vehicle.