IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 02 Jun 2013 | Removal date: open ended
Still in force

Loan guarantee

On 17 April 2013, Slovenia notified the EC about its plans to support the Cimos Group.
 
Cimos is one of the largest Slovenian industrial companies that supplies major car brands like BMW, Citroen, GM, Peugeot, Renault, Volkswagen with parts and components like turbochargers, hinges, parking breaks, drums, pedal boxes. The full list of brands and components can be found in paragraph 2 of the letter from the EC to Slovenia, Brussels 2 June 2013.

 
Already on 15 June 2012, Cimos agreed with its banks to postpone repayment of outstanding debt amounting to more than EUR 230 million. The grace period was extended twice (para. 8).
 
On 21 May 2013, Slovenia agreed to provide a state guarantee for a new 6-month loan. The loan itself is provided by numerous banks listed in paragraph 13.

 
The EC finds that: 'the aid is apt to improve the competitive position of Cimos on the relevant markets (automotive, machine building and tooling, energy and agricultural machinery) which are open to competition from other Member States. Therefore, it distorts or threatens to distort competition and affects trade between Member States.'

 
Update:
On9 April 2014, the European Commission opened an in-depth investigationinto another state aid provided to the Cimos Group. This time, the aid worth EUR 35 million was given in the form of a debt-to-equityconversion of the state's claim against the company resulting from therescue aid guarantee.
 
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.
 
The list of affected countries is based on the Top50 Automotive suppliers (see sources.)

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870810 Bumpers and parts thereof
870830 Brakes and servobrakes; parts thereof
870840 Gear boxes and parts thereof
870850 Driveaxles with differential, whether or not provided with other transmission components, and nondriving axles; parts thereof
870870 Road wheels and parts and accessories thereof
870880 Suspension systems and parts thereof (including shock absorbers)
870891 Radiators and parts thereof
870892 Silencers (mufflers) and exhaust pipes; parts thereof
870893 Clutches and parts thereof
870894 Steering wheels, steering columns and steering boxes; parts thereof
870895 Safety airbags with inflater system; parts thereof
870899 Other
492 Motor vehicle bodies; trailers & parts thereof
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870821 Safety seat belts
870829 Other

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