ANNOUNCEMENT 17 Apr 2013In April 2013, the government of Slovenia announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Letter from the EC to Slovenia, Brussels 2 June 2013
Automotive News Top 100 parts suppliers on the car market , 17 June 2013
Letter from the EC to Sloveniam Brussels 9 April 2014
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.'
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.)