The European Commission has launched an investigation into Hungary’s decision to give Audi €133.3m in state aid to help fund the German carmaker’s €1.2bn expansion plans in the city of Gyor. The commission said it is concerned that the aid could impact competition in the area and wants to make sure the aid meets EU regulations.
“Given the size of the project and the market share of the Volkswagen Group – the owner of Audi – the commission needs to verify the impact of the project on regional development and whether the aid is necessary to carry out the investment in Gyor,” the EC said in a statement.
Audi is planning to expand its Gyor plant in northwestern Hungary. the expansion is expected to add 2,100 jobs to the local market.
