The Citroen C4 Hybride HDi: further French state R&D aid is attracting the interest of Competition Commissioner Neelie Kroes
While it supports the development of less polluting cars the Commission thinks it likely that Peugeot-Citroën, the second largest automobile manufacturer in Europe, would have undertaken this project anyway, even in the absence of a state subsidy, given that other car makers have announced similar projects in relation to more environmentally friendly cars.
EU Competition Commissioner Neelie Kroes said, “We have to ensure that the aid is not spent on R&D that would have been carried out by Peugeot-Citroën in any event or which its competitors may carry out without state aid.”
France is planning to grant €96 million aid to Peugeot–Citroën and 16 partners for the development of various parts of a hybrid diesel car. The total R&D costs of the project are €470 million out of which €271 million would constitute costs eligible for aid. The programme is within the framework of the French Industrial Innovation Agency aid scheme, which was authorised by the Commission on 19 July 2006.
The aim is to produce a car that emits less than 90g/km of CO2 and has a fuel consumption of less than 3.4 litres/100 km, while reducing the cost of hybrid vehicles.
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