Brussels Investigates State Aid To Porsche

Porsche's soon-to-be 100 percent owner Volkswagen is making money hand over fist. At the same time, the German tax payer is contributing  43.67 million euros to the expansion of Porsche's plant in Leipzig, Germany, where the new Macan will be made starting in 2014. This has attracted the attention of EU competition regulators. German authorities agreed to  donate a direct grant of 43.67 million euros and an investment premium to the cause of the Leipzig plant. According to Reuters, EU competition regulators will examine whether the transaction is in breach of EU state aid rules. Latest word from Brussels: "The Commission will check whether the aid is necessary and proportionate to provide an incentive for the investment and whether its contribution to regional development outweighs the distortion of competition." Porsche spokesman Hans-Gerd Bode says it's for the good of Leipzig and vicinity:  "We're taking steps to improve the structures of the regional economy. That's fully in line with aid guidelines."  from The Truth About Cars http://www.thetruthaboutcars.com

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