The Commission has approved an aid package of €14.3 million proposed by the Slovak authorities to Volkswagen Slovakia to increase the production capacity at a plant in Bratislava. The project involves total eligible investments of €300 million (most of which is being funded by Volkswagen Slovakia itself) which will be used to enable the production of a new small family model car.

The Commission assessed the aid in accordance with its 2007-2013 Regional Aid Guidelines in order to ensure that Volkswagen Slovakia’s market share, and its production capacity created by the investment, would remain below the thresholds provided in the Guidelines. If they do, then the negative effects of the aid on competition are thought to be offset by the positive contribution it provides to regional development. The Commission established that Volkswagen’s market share would stay below the threshold of 25% both before and after the investment in the car segments concerned, and that the increased capacity would cause no additional concerns.

IP/09/1865 – 2 December 2009