EU Regulators Investigating Porsche for Macan Production Grant

EU Regulators are investigating Porsche for a €43.67 million grant that it received from German authorities to build the MacanPorsche MacanGermany, 2013 > present1 photo
in Leipzig. The investigation centers on whether PorschePorscheGermany, 1931 > present39 models
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will get an unfair competitive advantage.

Porsche and its new owner Volkswagen control a large margin of the crossover market in Europe and especially in Germany. The project to build the Macan in Leipzig is worth €522 million, and Porsche received the grant to cover part of this cost. The regulators are investigating whether the grant violates state aid rules.

"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," said the EU regulator in a statement.

"The construction work has already started and if the grant is not approved, we will pay for it ourselves," said Porsche in response.

Porsche's compact crossover the Macan is slated to go into production in 2014. Porsche is building the Leipzig factory to build the car. 

Source: Automotive News