EU regulators to investigate Spanish aid for Ford

Wed May 15, 2013 5:59am EDT
 
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BRUSSELS (Reuters) - EU antitrust regulators will investigate whether a 25.2 million euros ($32.71 million) grant given by Spanish authorities to U.S. carmaker Ford Motor Co's F.N van facility in Valencia breached EU state aid rules.

Ford plans to produce a new model of Ford Transit Connect in Valencia, with the cost of the project estimated at 419.9 million euros. Spain informed the European Commission of its grant last year.

The European Commission said on Wednesday that a preliminary investigation showed that the project might exceed the authorized 5 percent increase in production capacity on a market in decline.

"At this stage, the Commission has doubts that the data provided by Spain is appropriate to determine whether the market concerned is in decline," it said in a statement.

($1 = 0.7705 euros)

(Reporting by Foo Yun Chee, editing by Robert-Jan Bartunek)

 
The Ford logo is pictured on the rooftop of Austria's Ford head branch in Vienna March 19, 2013. REUTERS/Heinz-Peter Bader