Brussels, 02/07/2013 (Agence Europe) - On 2 July, the European Commission opened an in-depth investigation to examine whether Slovenian plans to grant public financing to car maker Revoz, d.d., a subsidiary of Renault S.A. of France for a €300 million investment project in the Novo Mesto region, to build the new Renault Twingo and the new Smart four-seater.
The investment is aimed at creating 162 new jobs in the Novo Mesto region, which is eligible for regional aid as an area with significant unemployment and a below-average standard of living. The two car models belong to the small city car segment of the passenger car market which is currently in significant decline. The Commission is therefore opening an investigation under its regional aid guidelines to see whether the investment will create substantial over-capacity in a declining market. It will also verify the investment cost for vendor tooling (i.e. dedicated equipment in suppliers' factories for the manufacture of Renault parts) located outside the Novo Mesto region. (FG/transl.fl)