Export Development Canada loans VW Group €400m for N American expansion
Export Development Canada (EDC) has announced financing of 400 million euros to Germany-based Volkswagen Group. The corporate financing is focused upon Volkswagen’s expansion of their operations in the Southern United States (US) and Mexico.
Volkswagen comprises twelve brands from seven countries, and holds a 12.9 per cent share of the 2014 world passenger car market. The group generated sales revenues of 202.5 billion euros and an operating profit of 12.7 billion euros in 2014.
EDC is a global commercial lender to foreign companies that have, or are open to considering, business with Canadian companies.
“Given the growing presence of Canadian toolers and auto parts manufacturers into key automotive hubs like the Southern US and Mexico, a natural alignment developed with the interests of Volkswagen,” said Klaus Houben, senior regional manager, Europe, EDC.
“Canadian suppliers are already well positioned to offer innovation and cost savings to OEMs, two things that will be of value to Volkswagen as they grow their operations in these markets,” added Houben. “EDC’s role is to bring financial capacity to make that expansion easier.”