Renault received a 400 million euro ($517 million) loan from the European Investment Bank (EIB) and according to Automotive News it will use the money to finish developing the new Twingo minicar.
Set to be launched in 2014, the new Renault Twingo will share a rear-wheel-drive platform with the new Smart ForFour as part of an alliance between Smart's parent, Daimler, and Renault-Nissan.
An electric version of the Twingo will also be produced and will be inspired by the Twin’Z Concept.
The loan was received by Renault as part of EIB's support for environmentally friendly and affordable vehicles, as supporting innovation in the aut industry is one of their priorities.
EIB also added that the much of the money will be sued to develop lightweight materials for the design in order to reduce the vehicle’s weight and improve aeodynamics.