Brussels, 11/07/2012 (Agence Europe) - On Wednesday 11 July 2012, the European Commission opened an in-depth investigation to examine whether regional aid in favour of German car maker Porsche in Saxony is in line with EU state aid rules. Given the high market shares of Volkswagen-Porsche and the capacity increase brought about by the investment, the Commission has to undertake an in-depth assessment of the aid. The Commission will check whether the aid is necessary and proportionate to provide an incentive for the investment and whether its contribution to regional development outweighs the distortion of competition.
In December 2011, Germany notified the Commission of regional aid for Porsche Leipzig GmbH and Porsche AG, both subsidiaries of the Volkswagen-Porsche Group, for an investment project in Leipzig, in the region of Saxony, Germany. The project aims at manufacturing a new passenger car model, the “Porsche Macan”. Total investment costs amount to €521.56 million. Germany intends to support the project with €43.67 million in the form of a direct grant and an investment premium. The investment project started in April 2011 and its completion is planned for 2014. The Commission explains in a press release that Leipzig is eligible for regional aid to further the development of certain economic activities or sectors, pursuant to Article 107(3)(c) of the Treaty on the Functioning of the EU. (OL/transl.fl)