09.06.2010 EU GREEN LIGHTS ITALIAN GOVERNMENT AID FOR FIAT POWERTRAIN

FIAT POWERTRAIN TECHNOLOGIES C635 - TCT TRANSMISSION
FIAT POWERTRAIN TECHNOLOGIES C635 - TCT TRANSMISSION

Developed and produced by FPT, the acclaimed new TCT unit is part of a modern family of 6-speed gearboxes, called C635, that was launched - in the mechanical version - on the 170 HP MiTo 1.4 MultiAir Turbo petrol at the Geneva Motor Show earlier this year.

The European Commission has authorised, under EU state aid rules, 16 million euros of regional investment aid, which the Italian authorities intend to grant to Fiat Powertrain Technologies (FPT) for the production of car transmissions in Verrone, Piemonte, Italy. FPT's existing plant will be equipped with new machinery, heat treatment and assembly lines to produce an innovative transmission unit intended for mid-range vehicles. The investment is expected to create 600 new jobs once full production is reached in 2013. The Commission found the measure to be compatible with the requirements of the Regional Aid Guidelines and in particular with the rules on large investment projects, because FPT will not significantly increase its production capacity and the investment takes place in a growing market.

“In these difficult times, innovating and creating jobs is of utmost importance. Fiat Powertrain's investment project is expected to achieve this without unduly distorting competition", said Commission Vice President and Competition Commissioner Joaquín Almunia.

The Italian authorities intend to grant 16 million euros of regional aid for a total investment amounting to 392 million euros to Fiat Powertrain Technologies for producing the new C635 transmission unit, both manual and dual dry clutch transmissions, which will gradually replace the existing C530 transmission. The project includes the extension of the existing plant and a significant change in the production process, to make it more efficient and to adapt it to the new C635 model.

The public support is granted under an existing aid scheme but, due to the amount and investment costs involved, the measure had to be notified to the Commission for individual assessment and clearance. The assessment of regional aid to large investment projects requires that the Commission checks the market share of the beneficiary and the production capacity created by the investment remain below certain thresholds set by the Regional Aid Guidelines. When the thresholds are not exceeded, the effect of the aid on competition is deemed to be outweighed by its positive contribution to regional development. The Commission assessed FPT's position on the relevant transmission and car market segments and found that FPT's market share and capacity increase for this project would remain below the thresholds.
 

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