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Image header Agence Europe
Europe Daily Bulletin No. 7803
Contents Publication in full By article 27 / 56
GENERAL NEWS / (eu) eu/state aid

Decisions concerning automotive sector in United Kingdom

Brussels, 20/09/2000 (Agence Europe) - The Commission has taken a decision on three State aids in the automotive vehicle sector in the United Kingdom: a) it opened an formal investigation procedure so as to assess the compatibility of a aid totalling GBP 40 million that the British authorities are considering granting to Nissan for its "Micra" production model in its Sunderland factory. The Commission also has doubts as to the need and proportionality of the aid, admissibility of cots and the consequences of this measure on production capacity; b) it has authorised aid of £5 million to Nissan for alterations in this same plant intended to allow for the production of the "Primera" model. It considers that this aid complies with the Community framework for State aid in the automobile sector and, whence, compatible with the EC Treaty; c) regarding the Rover Longbridge affair, the Community Executive has closed the formal investigation procedure, following the withdrawal, by the British authorities, of their notification of State aid in July 2000. It was a question of regional aid to investment of £141 million that the German manufacture BMW was to benefit from for the Rover Longbridge plant (see EUROPE of 23 December, p.13).

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