Brussels, 18/07/2013 (Agence Europe) - On 17 July, the European Commission decided that the €24.2 million of aid (€8.3 million in subsidies and €15.9 million in repayable advances for industrial research and development) granted by France to the car component manufacturer Valeo to conduct the “Essencyele” research and development programme complies with the EU rules on state aid. The aim of this project is to develop an intermediate (or “mild”) hybrid system for petrol-engined vehicles. The Commission found that the aid addresses a genuine market failure without giving rise to an undue distortion of competition because it will help Valeo carry out innovative R&D that it would otherwise not have carried out. The project is being carried out in cooperation with four other companies and seven research bodies. (FG/transl.fl)