Press Release: State aid: Commission approves €16 million regional aid for Fiat Powertrain investment project in Verrone, Italy

The European Commission authorised on 9 June 2010, under EU state aid rules, €16 million of regional investment aid, which the Italian authorities intend to grant to Fiat Powertrain Technologies S.p.A. (FPT), a subsidiary of the Fiat Group, for the production of car transmissions in Verrone (Piemonte), Italy. FPT's existing plant will be equipped with new machinery, heat treatment and assembly lines to produce an innovative transmission unit intended for mid-range vehicles. The investment is expected to create 600 new jobs once full production is reached in 2013. The Commission found the measure to be compatible with the requirements of the Regional Aid Guidelines 2007-2013 (see IP/05/1653) and in particular with the rules on large investment projects, because FPT will not significantly increase its production capacity and the investment takes place in a growing market.