IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 13 Jul 2011 | Removal date: 31 Dec 2016
Still in force

Financial grant

On 27 December 2010, the German authorities notified the EC on their intention to grant regional aid to the Volkswagen Sachsen GmbH.

Volkswagen Sachsen GmbH is a subsidiary of the Volkswagen Group, one of the largest car manufacturers worldwide. Germany intended to support the above mentioned firm by providing direct grants as well as an investment premium (para. 3 , Letter from the EC to Germany, Brussels 13.07.2011) . The invested state money would be used to change the production process from the so-called 'platform' based manufacturing to a 'module' based manufacturing process.

The total aid amounts to EUR 94.7 million and will be disbursed over a period of 6 years, between 2011-2016.

The EC states that "The financial support in the form of a direct grant and an investment allowance given to Volkswagen Sachsen GmbH and the Volkswagen Sachsen Immobilienverwaltungs GmbH will relieve these companies from costs which they would normally have had to bear themselves. Therefore, these companies
benefit from an economic advantage over their competitors. (para. 32 , Letter from the EC to Germany, Brussels 13.07.2011).


Furthermore, the commission concludes that "The financial support in the form of a direct grant and an investment allowance by the German authorities will be given for an investment resulting in the production of vehicles. Since this product is subject to intensive trade between Member States, the support given is likely to affect trade between Member States. (para. 33 , Letter from the EC to Germany, Brussels 13.07.2011).

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other

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