Press Release: State aid: Commission opens in-depth inquiry into proposed French R&D aid to Peugeot-Citroën for hybrid diesel car

The European Commission launched an in-depth investigation to determine whether a €96 million aid that France plans to grant Peugeot-Citroën and other partners for the development of a hybrid diesel car (VHD) is compatible with EC Treaty state aid rules. The Commission fully supports the development of less polluting cars. However, in the present case, the Commission thinks it likely that Peugeot-Citroën, the second largest automobile manufacturer in Europe, would have undertaken this project anyway, even in the absence of a state subsidy, given that other car makers have announced similar projects in relation to more environmentally friendly cars. The opening of an in-depth investigation gives interested parties an opportunity to comment on the proposed measures. It does not prejudge the outcome of the procedure.