BRUSSELS (AP) -- The European Union has approved loan guarantees to Ford Motor Co.'s Volvo unit to help it build cleaner cars.
The European Commission says Volvo is planning to use euro500 million ($708 million) from the European Investment Bank for its euro1.9 billion ($2.7 billion) project to develop more fuel-efficient low-emissions vehicles.
The Commission, which announced the decision Friday, says the loans will be used over the next two years. The loans will be guaranteed by the Swedish government.
Volvo announced a joint venture this week to develop an electric-diesel hybrid car model that can be charged directly from a wall socket.