BRUSSELS, July 11 EU competition regulators will
examine whether a 522-million-euro ($640 million) project to
build a new Porsche passenger car gives the German
carmaker an unfair advantage, in breach of EU state aid rules.
The European Commission opened an in-depth investigation on
Wednesday, saying it was necessary because of the high market
shares of Porsche and its part-owner Volkswagen.
"The Commission will check whether the aid is necessary and
proportionate to provide an incentive for the investment and
whether its contribution to regional development outweighs the
distortion of competition," the EU regulator said in a
The project in Leipzig, in the east of Germany, it to make a
new passenger car model, the Porsche Macan, by 2014. German
authorities will provide a direct grant of 43.67 million euros
and an investment premium.
German authorities notified the EU regulator of the proposed
aid in December last year.
Volkswagen is seeking to buy up the remaining half of
Porsche it does not already own.
($1 = 0.8160 euros)
(Reporting by Foo Yun Chee; editing by Rex Merrifield)