The European Commission has authorised, under EU state aid rules, 16 million
euros of
regional investment aid, which the Italian authorities intend to grant to Fiat
Powertrain Technologies (FPT) 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 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.
“In these difficult
times, innovating and creating jobs is of utmost
importance. Fiat Powertrain's investment project is
expected to achieve this without unduly distorting
competition", said Commission Vice President and
Competition Commissioner Joaquín Almunia.
The
Italian authorities intend to grant 16 million euros of
regional aid for a total investment amounting to 392
million euros to Fiat Powertrain Technologies for
producing the new C635 transmission unit, both manual
and dual dry clutch transmissions, which will gradually
replace the existing C530 transmission. The project
includes the extension of the existing plant and a
significant change in the production process, to make it
more efficient and to adapt it to the new C635 model.
The
public support is granted under an existing aid scheme
but, due to the amount and investment costs involved,
the measure had to be notified to the Commission for
individual assessment and clearance. The assessment of
regional aid to large investment projects requires that
the Commission checks the market share of the
beneficiary and the production capacity created by the
investment remain below certain thresholds set by the
Regional Aid Guidelines. When the thresholds are not
exceeded, the effect of the aid on competition is deemed
to be outweighed by its positive contribution to
regional development. The Commission assessed FPT's
position on the relevant transmission and car market
segments and found that FPT's market share and capacity
increase for this project would remain below the
thresholds.
