EU bank grants Renault $522M to build cleaner cars

The European Investment Bank (EIB) has announced that it has granted Paris-based Renault €400 million (about $522 million) to help it develop cleaner vehicles before the end of the decade.

Part of the money will go towards a research project that aims to reduce the weight of cars and make them more aerodynamic in order to noticeably improve gas mileage without resorting to costly hybrid drivetrains.  The data gathered by the project will be used to develop small, entry-level cars aimed at buyers on a tight budget.

Renault will also use the EIB's loan to develop a new generation of clean powertrains.  Details are scarce, and whether the new family of engines will simply build upon existing internal combustion technology or use the help of an electric motor is not known.

Finally, Renault will use some of the money to develop the chassis that will underpin the next generation of the Twingo, which is expected to borrow design cues from both the Twin'Z and the Twin'Run concept.  Scheduled to bow in 2015, the third-gen Twingo will be the first member of the Renault lineup to benefit from the technological advancements partially funded by the EIB.

The EIB has granted Renault over €1 billion (roughly $1.3 billion) since 2009 and it remains convinced that the investment will pay of in a variety of ways.

"Through our support for innovation, we are preparing the future of the European motor industry. And the first to benefit will be the EU’s citizens in their daily life," said Philippe de Fontaine Vive, the EIB's vice-president, in a prepared statement.