The European Commission (Commission) is to investigate further the compatibility of €96 million of research and development aid for development of a hybrid diesel car, which France is proposing to grant to Peugeot-Citroën and other partners. Peugeot-Citroën is the second largest car manufacturer in Europe. The Commission is to investigate whether Peugeot-Citroën would have invested in the development of more affordable and environmentally friendly cars, even without financial support from the French Government. Other competitors have already announced similar plans without the benefit of a State subsidy. The Commission considers that this indicates that, on the face of it, there is no market failure in this area justifying State aid. During its investigation, the Commission will seek opinions from the car industry as well as assessing the competition and trade impact such aid may have within the EU.