EU Investigates 96 Mil. Euro Aid to Peugeot-Citroen on Diesel Technology

The total research and development cost of the project is 470 mln euro out of which 271 mln euro would constitute as state aid. 96 mln Euro would come from French gov't, which may violate EU rules.

Published: 14-Nov-2007

The European Commission said it has launched an in-depth investigation into whether 96 mln eur of aid earmarked by the French government for Peugeot SA-Citroen and other partners for the development of a hybrid diesel car breaches EU rules.

'The Commission fully supports the development of less polluting cars,' the commission said in a statement. 'In the present case, the Commission thinks it likely that Peugeot-Citroen... 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.'

France plans to grant 96 mln eur of aid to Peugeot-Citroen and 16 partners in the form of grants and repayable advances for the development of various parts of a hybrid diesel car.


Last June, the diesel-powered Audi R10 on display in the Audi exhibit won the world's most prestigious sports-car endurance race, the 24 Hours of LeMans. It became the first non-gasoline powered car in the 74-year history of the legendary French competition to finish first.

The Bluetec E-class gets 26 miles per gallon city/37 mpg highway, an astonishing 45 percent better fuel economy than the gas-powered E350.


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