European Commission probing into Hungary aid granted to Audi

Article by Christian A., on July 11, 2014

The European Commission commenced an investigation into whether the state aid provided by Hungary to German luxury carmaker Audi complied with European Union rules. Hungary granted Audi EUR133.3 million of state aid for an expansion of its Gyor site located in its western side. The EUR1.2-billion project is expected to create 2,100 jobs.

In a statement, the Commission said it had concerns on whether the state aid could harm competition. The Commission said in a statement that given the size of the project and the market share of the Volkswagen Group, it needs to verify the impact of the project on regional development.

The Commission said that it would look into whether the state aid is necessary to carry out the investment in Gyor. The Commission said it had allowed EUR43.67 million in German aid to Porsche to help the carmaker expand its Leipzig site in Saxony where it plans to build the Macan compact SUV.

The EUR522-million project is expected to secure 900 existing jobs at the site while creating over 1,000 new ones. According to the Commission, its assessment determined that the German aid was needed for the project to commence in Leipzig.

The Commission also trimmed state aid granted to BMW for producing the i3 and i8 vehicles at its Leipzig site – from EUR45 million to EUR17 million. The Commission said it had determined that only part of the planned aid was needed for BMW to bring on the project. [source: BBJ.hu]

If you liked the article, share on:

Topics: audi, hungary

Comments

Recommended

The Chinese market will soon be getting the exclusive China-only model, Mercedes-Benz GLC-L, for a premium of 15,000 yuan ($2,300) more than the regular model. The difference is actually quite...
by - January 20, 2018
The Bentley Bentayga is set to participate in the famous Pikes Peak International Hill Climb that is slated to take place on June 24th in Colorado. The automaker’s motorsport department...
by - January 19, 2018
Infiniti will commence sales of the new 2019 Infiniti QX50 in the spring, with a starting price of $36,550. But before the big launch, Infiniti has introduced a new reservation...
by - January 18, 2018
BMW fans may be surprised with what the car manufacturer’s boss Robert Irlinger said in a recent interview with Autocar during a recent media meeting. And this is the fact...
by - January 18, 2018
Currently, there aren’t any Lexus convertibles out in the market, but it seems like it won’t be too long until we see one again. This is because Toyota’s premium brand...
by - January 18, 2018
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries