Press Release: State aid: Commission opens in-depth investigation into possible aid in privatisation of Romanian car producer Automobile Craiova

The European Commission has opened a formal investigation under EC Treaty state aid rules into possible aid granted in the context of the privatisation of Automobile Craiova (former Daewoo Romania) and its sale to Ford Motor Company in September 2007. The Commission has also required Romania to suspend the granting of any unlawful aid until the Commission takes a decision on its compatibility. The Romanian authorities attached specific conditions to the privatisation, in particular the achievement of a minimum production level of 200,000 cars in the fourth year after the privatisation, the continuation of the current activity for four years and the maintenance of all former employees of Automobile Craiova and Daewoo Romania. The Commission has to verify whether these conditions resulted in a lower sales price than if the privatisation had been unconditional. If this is the case, the privatisation could involve elements of state aid. In addition, Romania seems to have changed the terms of the privatisation at a later stage of the process, which might have involved additional aid elements. The opening of an investigation gives interested parties the possibility to comment on the measures under examination. It does not prejudge the outcome of the procedure.