PARIS -- Valeo has received approval for 600 million euros ($727 million) in financing from the European Investment Bank for projects to reduce emissions and improve active safety, including 48-volt mild hybrid technology and autonomous driving.
The money will be paid out by 2022, starting with an initial 300 million euro loan, and go toward R&D projects in the Czech Republic, France, Germany and Ireland.
Valeo CEO Jacques Aschenbroich called the financing “extremely important.”
"It will enable us to continue our research efforts and strengthen our technological leadership in the key areas of reducing CO2 emissions and improving road safety,” he said in a news release on Wednesday.
Other projects that will benefit from the financing include battery cooling, cabin climate control, advanced driving assistance, and "smart" lighting and wipers. Valeo said it planned to spend a total of 1.4 billion euros on these projects in the next four years.
Valeo has received financing from the European Investment Bank, or EIB, before, including a 300 million loan in 2009 for research in the same areas.
The EIB has prioritized projects to reduce greenhouse gas emissions. In 2020 it awarded a total of more than 1 billion euros to encourage development of European battery cell production.
Other recent financing for automotive suppliers includes 150 million euros in funding in Decmber to ZKW Group of Austria for lighting research and 200 million euros to Gestamp last May for research into lightweight metals.
Valeo ranks No. 10 on the Automotive News Europe list of the top 100 global suppliers, with worldwide parts sales to automakers of $18.05 billion in 2019.
