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Europe Daily Bulletin No. 8300
Contents Publication in full By article 22 / 41
GENERAL NEWS / (eu) eu/state aid

Commission authorises aid (according to some conditions) to Vauxhall in Ellesmere Port

Brussels, 18/09/2002 (Agence Europe) - On Wednesday, the European Commission took a positive, conditional decision with regard to planned regional aid for an investment of Vauxhall Motors Ltd., a UK subsidiary of General Motors of the US, at its plant in Ellesmere Port, in Cheshire. The Commission has concluded after a careful investigation under the European Union's rules on aid to the motor vehicle industry that it could clear the 10 million pounds (around €15.92 million) that the UK authorities plan to grant in regional aid. The UK government had argued that the subsidies were needed to compensate Vauxhall for the higher costs of investing in Ellesmere Port rather than in Antwerp Belgium, the alternative investment location, amongst others for the higher costs of training the workforce. The Commission agreed to this, but clarified that the UK could not grant further training subsidies for the same project under the specific Community training aid regulation. The green light from Brussels was therefore given.

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