Volvo to Borrow Money from China

Volvo Automobile says it has signed a memorandum of understanding for a loan from the state-owned China Development Bank to finance the construction of new Chinese factories and development of more fuel-efficient vehicles.

The Swedish carmaker has said it plans to invest 75 billion kronor ($11.1 billion) in such projects through 2015. Volvo, which is owned by Zhejiang Geely Automobile Holding Co., says the amount of the loan has not yet been decided.