Brussels, 07/05/2002 (Agence Europe) - After a detailed investigation, the Commission has approved investment aid to Ford España, a subsidiary of the US automobile group, the Ford Motor Company Inc, for its plant in Almusafes (Valencia). The aid amount, however, was reduced from the amount initially foreseen. The aid in question is regional investment aid for the production of a new engine (the I4), to equip cars such as the Focus and Mondeo models from the year 2003, a project for which EUR 334 million will be invested between 2000 and 2003. In December 2003, Spain had notified the Commission of aid totalling EUR 15.74 million in favour of this project, justifying it by the fact that the region concerned was recognised by the Commission as likely to benefit from regional aid up to 37% of eligible investment costs. In June 2001, the Commission had decided to open an indepth inquiry as it was, at first sight, unable to ascertain whether the aid respected the criteria established by the Community State aid framework in the automobile sector (see EUROPE of 8 June 2001, p.14). The criteria provide, on one hand, for aid to be both necessary for the realisation of the project and, on the other, proportionate to the gravity of the problems that it must help to resolve. Thus, the aid cannot, under any circumstances, exceed the ceiling foreseen for aid of a regional kind, and the beneficiary must clearly demonstrate that he/she has an alternative economically viable site for the project in question. Spain had said that the investment could have been carried out at the Ford Bridgend site in the UK, and the Commission, on the basis of information gathered during its inquiry, concluded that the British site could be considered as a viable alternative for setting up the project. It therefore considered the project to be mobile, and the aid as necessary to its realisation. Regarding aid proportionality, the Commission reduced from EUR 15.74 million to 11.11 million the amount initially proposed, the maximum eligible amount according to the criteria set.