The European Investment Bank has approved €866 million ($1.14 billion U.S.) in loans to automakers to fund the development of greener cars. Two thirds of the funds for the new loans come from the European Economic Recovery Package and are targeted at helping to significantly cut greenhouse gas emissions from transportation. Of the total awarded last week, €400 million will go to Nissan's European operations for the development and manufacturing of more efficient vehicles at the company's plants in the UK and Spain. A further €340 million is going to Jaguar-Land Rover to fund the development of the significantly more efficient vehicles such as the extended range electric XJ that we told you about the other day. Volkswagen also got a loan for the manufacture of cars that will meet new emissions standards in India. In total, the European Investment Bank is increasing lending by €15 billion annually in 2009 and 2010 as a result of the EU stimulus package that was passed in December 2008.

[Source: European Investment Bank]