OTTAWA, April 23, 2015 /CNW/ - Export Development Canada (EDC) today announced financing of EUR 400 million to Germany-based Volkswagen Group (Volkswagen).
The corporate financing is focused upon Volkswagen's expansion of their operations in the Southern United States (U.S.) 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.
Volkswagen Group, one of the world's leading automobile manufacturers, comprises twelve brands from seven countries, and holds a 12.9 per cent share of the 2014 world passenger car market. The group generated sales revenues of EUR 202.5 B and an operating profit of EUR 12.7 B in 2014.
EDC is Canada's leading 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.
"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). There are currently more than 30,000 opportunity profiles posted through the European Commission's Enterprise Europe Network, which the ECN links to.
EDC is Canada's trade finance agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca.
SOURCE Export Development Canada
For further information: Spokesperson, Phil Taylor, Export Development Canada, (613) 598-2904, [email protected]