EU rules on government assistance to car makers

The European Commission has approved all the proposed German
Government support for Porsche but only a third of their proposed support for BMW.

The Business Spectator reports that the commission, which is
the EU’s executive arm, approved €43.67m ($63.25m) worth of assistance to the Porsche
plant in the German city of Leipzig.

However, it ruled that the proposed €45m worth of assistance
for BMW was too high and only approved €17m.

The commission said in a statement that the approved figure “was
actually necessary to bring the investment to Leipzig and has approved the
project only to that extent”.

Reuters reports that the European Commission will also investigate
the proposed assistance from the Hungarian Government to German carmaker Audi.

Hungary wants to provide €133.3m to Audi for a €1.2b investment
project in the Western Hungarian town of Győr. The project is expected to
create about 2,100 jobs.

“Given the size of the project and the market share of the
Volkswagen Group – the owner of AUDI – the Commission needs to verify the
impact of the project on regional development and whether the aid is necessary
to carry out the investment in Győr,“ the statement said.