ANNOUNCEMENT 13 Nov 2013

In November 2013, the government of the Netherlands announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Official letter from the EC to Netherlands in English, SA.36367:
http://ec.europa.eu/competition/state_aid/cases/248071/248071_1548111_122_2.pdf


Inception date: 13 Nov 2013 | Removal date: 12 Jan 2015
Still in force

Financial grant

On 13 November 2013, the European Commission allowed the Dutch authorities to provide the VDL NedCar with a direct grant worth EUR 6.5 million aimed at promoting regional development and job safeguarding in Born in the region of Limburg.
 
The beneficiary is a former subsidiary of Mitsubishi Motors Corporation and was sold to Van Der Leegte Beheer B.V. on 14 December 2012. After Mitsubishi decided not to produce any new models in the factory in 2012, the new owners decided to transform NedCar from an Original Equipment Manufacturer into a Vehicle Contract Manufacturer (herafter: VCM), meaning it would produce cars for different companies - conditional on finding a new customer. In September 2012, a deal was struck with BMW indicating that the factory would manufacture Mini models as of the second half of 2014.
 
In order to allow for this transformation of NedCar into a VCM, an investment worth EUR 82.3 million was necessary. The Dutch authorities agreed to provide 7.89% of those costs in the form of a direct grant in tranches in 2013 and 2014. The state aid was conditional on the investment remaining in the region for the upcoming 5 years.
 
As pointed out by the Commission, "considering that the measure concerns an undertaking involved in activities subject to trade between Member States, there is a risk that the aid could affect that trade." (para. 36, letter from the EC to Netherlands, Brussels 13.11.2013)
 
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.