EDC loans $525M to Volkswagen
Financing, focused on Volkswagen's expansion in the southern US and Mexico, aims to boost business for Canadian suppliers.
OTTAWA — Export Development Canada is lending Germany’s Volkswagen Group $525 million to boost sales by Canadian suppliers to the global auto giant.
The financing is focused on Volkswagen’s expansion in the southern US and Mexico.
It’s designed to create opportunities for small- and medium-sized Canadian enterprises (SMEs) to win new business with the automaker as it expands in North America.
Carl Burlock, the EDC’s senior vice-president, financing and investment, says the financing is about relationship-building, both for EDC and Canadian SMEs in the tooling and automotive supply industries.
He says the loan gives qualified Canadian SMEs a real chance to be considered by a major industry player in ways they might not have been able to manage on their own.
Volkswagen Group is one of the world’s leading automobile manufacturers, boasting a 12.9% share of the world passenger car market in 2014.
The EDC, Canada’s leading provider of financing and insurance for Canadian businesses with sales or business in other countries, targets companies like Volkswagen whose procurement needs match up with Canadian expertise.
“With the southern US and Mexico increasingly becoming prime production locations for global automakers, EDC has a role to play in making sure that Canadian companies have the opportunity and financial wherewithal to compete for that business,” Burlock said in a statement.
“When Canadian companies win business after our introductions, they won’t be left on their own. EDC can provide them with financing and insurance solutions to support their growth in these new markets.”
© 2015 The Canadian Press