Brussels, 27/07/2001 (Agence Europe) - The European Commission has decided to carry out a thorough investigation into regional aid amounting to EUR 63.8 million that Germany plans to grant to DaimlerChrysler and Mitsubishi Motors Corporation. After a preliminary inquiry, it was not able to establish whether the planned aid meets the requirements of the specific State aid framework for the automobile sector. It invites Germany to communicate, within one month, all the information required for assessment of the case.
The project concerns the setting up of a new green-field engine production plant with a total investment volume of around EUR 243.91 million, and will create around 500 new jobs. The recipient of the regional aid would be initially DaimlerChrysler and then the Japanese manufacturer Mitsubishi. Both manufacturers will be building a new joint venture, planned for 2003, and Mitsubishi will be responsible for directing the production plant set up by the German company. All investment and all aid will be given over to the new company on this occasion. DaimlerChrysler has studied the various possibilities of other sites and concluded that the best alternative location would be a site in Nyergesujfalu, in Hungary. To date, the information provided by Germany for benefiting from the aid has not been considered sufficient, especially concerning the proportionality of the aid, and the effects on the production capacity of the group.