The European Commission on Thursday said it opened a formal investigation into HUF 14.9bn of Hungarian state aid for a HUF 153.4bn investment by Audi Hungaria Motor at its plant in Gyor (NW Hungary).
Hungary plans to subsidise the installation of new production lines for next-generation engines and engine components at the plant.
“At this stage, the Commission’s preliminary view is that the market shares of the Volkswagen-Porsche Group exceed the limits established by the Commission’s regional aid guidelines, and in particular the thresholds of the rules for large investment projects,” the Commission said. “The opening of an in-depth investigation gives interested third parties the possibility to comment on the proposed measure. It does not prejudge the outcome of the procedure.”
The Commission’s preliminary investigation revealed doubts that in some markets for passenger cars the 25pc market share threshold of the regional aid guidelines would be exceeded.