Brussels, 24/07/2003 (Agence Europe) - The European Commission has decided to initiate formal investigation proceedings concerning aid amounting to € 178 million that the Italian state intends to grant the car maker De Tomaso. In December 2002, Italy notified a regional aid project involving a € 219 million investment for building a new plant in Cutro (Calabria). The new plant would employ around 800 staff in 2009 to produce sport luxury cars and assemble an off-road vehicle produced by the Russian motor vehicle constructor UAZ. Following the rules on State aid to the motor vehicle industry, Italy carried out a cost-benefit analysis comparing the costs of investing in the Cutro site and in the Modena (Italy) and Timisoara (Romania) alternatives. Although Cutro was recognised by the Commission as a regionally assisted area, the Commission has doubts about some elements of the cost-benefit analysis carried out. The formal investigation proceedings allow Italy and interested parties to submit their observations.