Associated Press (AP) reports that the EU Commission is to opened an investigation into some £16 million ($25.5 million) of British government aid for France’s Peugeot SA plant in the West Midlands region.
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Britain wants to help the carmaker produce an upgraded version of its 206 model at its Ryton plant. But to receive government handouts, car companies must show that a cheaper site exists elsewhere for building or renovating a plant.
On Wednesday, the Commission said it doubted Peugeot has found a cheaper alternative outside Britain.
Peugeot says it has found a cheaper alternative for the project in Trnava, Slovakia. But the EU Commission said “the cost benefit analysis does not clearly establish the cost disadvantage of Ryton.”
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