BELGIUM: EC probes PSA Peugeot Citroen government guarantee as state aid
Competition authorities in the European Commission say the French government has confirmed its guarantee to PSA Peugeot Citroen for its banking division, represents state aid and that the process will now be subject to a two-month evaluation.
At the end of last year, the French automaker secured agreement aimed at improving liquidity at Banque PSA Finance, the company's lending division, but the arrangement attracted the attention of the bureaucrats in Brussels, notably competition commissioner Joaquin Almunia.
PSA Peugeot Citroen is insisting the US$9bn guarantee made available by the French government for its banking division is a "help" and not a subsidy, but the EC says Paris has now conceded to Brussels the move does represent State aid.
However, the automaker is maintaining its stance the assistance will actually see the French State benefit from the move.
"It is not a subsidy," a PSA spokeswoman told just-auto from Paris. "It is a guarantee, a paying guarantee, it will bring the state money.
"It is a help or an aid, but it is not a subsidy. It is a kind of aid, yes, but not a subsidy in the sense they are giving us money."
For its part, the EC noted: "We confirm that the commission received notification from the French authorities on Monday, 7 January [in the] evening," a spokesman for Almunia told just-auto from Brussels.
"Once the notification is complete, the commission has two months to take a decision."
A separate spokeswoman in the EC confirmed to just-auto the notification was for state aid.
The analysts writing this report forecast the Global Automotive Camera Module market to reach US$1,554.72 million by 2016....
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
The analysts writing this report forecast Global Automotive Head-up Display market to grow at a CAGR of 28.61 percent over the period 2012-2016....
Urgent and concerted action needs to be taken to address the contentious issue of automotive over-capacity in Europe, but also in developing markets according to a study by KPMG....
This report is based on an in-depth market analysis with inputs from industry experts. The report covers the Americas and the APAC and EMEA regions; it also covers the Global Advanced Driver Assistanc...
A spokesman for Dongfeng Motor has reportedly told a Chinese newspaper that the state-controlled firm has no comment to make over rumours of it buying into PSA Peugeot Citroën....
Mitsubishi Motors has started production of the 2013 Pajero Sport midsize SUV at its joint venture [with PSA] PCMA Rus assembly plant in Kaluga, Russia....
- Kia K900 knocks on big brands' door
- Daimler - Q2 results insight
- THE WEEK THAT WAS: Results season again
- Global light vehicle market developments
- VEHICLE ANALYSIS: 2015MY Mitsubishi L200 Barbarian
- Jaguar Land Rover buys British classic cars hoard
- New alloy developed for new Jag
- JLR China cuts prices amid anti-trust probe
- Union puzzled no buyer for Unipart Automotive
- Warwick University chosen as APC hub