Thoroughly investigating the government aid given to Hungary AUDI

The European Commission opened an investigation into aid granted by Hungary for investment projects of Audi in Gyor, on the grounds that it is part of VW Group Audi has a market share above the limit set by the EC for support.

"When a recipient of aid for large investment regional project has high market share in some sectors, need to verify that the recipient does indeed need that help and if the result justifies the investment distortion of competition", said European Commissioner for competition , Neelie Kroes.

The investment aims at production of new generation engines and equipment and more than 511 million euro and the Hungarian government intends to award a grant of 49.5 million euros. The area where the investment would be made a standard of living is low and a high level of unemployment.

Commission's preliminary investigations indicate, however, that in some markets car market share of more than 25%, provided the rules governing state aid, could be overcome if Volkswagen. Thorough investigation seeks to clarify whether the aid is to encourage the recipient to conduct investment in the region and that aid to justify market distortions.

Source: http://www.audiusa.com/

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