EDC loans Volkswagen EUR400M for North American expansion
April 24, 2015 by Manufacturing AUTOMATION
Apr. 23, 2015 – Export Development Canada (EDC) today announced financing of EUR400 million to Volkswagen Group for the expansion of its operations in the Southern United States and Mexico.
The financing is designed to create opportunities for qualified small and medium-sized Canadian companies to win new business with the global automotive giant as they grow their operations in North America, said EDC, a provider of financing and insurance for Canadian businesses with sales or business in other countries.
“This financing is really about relationship building, both for EDC and Canadian SMEs in the tooling and automotive supply industries,” said Carl Burlock, senior vice-president, financing and investment, EDC. “The value here is that qualified Canadian SMEs get a real chance to be considered by a major industry player, where they might not have an opportunity to gain that kind of access on their own.”
EDC targets companies like Volkswagen whose procurement needs match up with Canadian expertise. Once EDC’s team has a detailed understanding of a company’s supply chain and business goals they will provide introductions to qualified Canadian companies with well-matched expertise, it noted.
“With the Southern U.S. 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,” added Burlock. “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.”
Qualified Canadian companies that may have an offer for Volkswagen can contact EDC at 1-888-434-8508 or register their services on Enterprise Canada Network (ECN), a joint venture between EDC and Canadian Manufacturers and Exporters (CME). The website works by matching profiles of Canadian selling companies (who post what kind of services and products they have expertise) and buying companies (who post what kind of services and products they are looking for).