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Peugeot

Volume 450: debated on Monday 23 October 2006

To ask the Secretary of State for Trade and Industry what (a) Government and (b) EU grants Peugeot has received in the last 15 years; and if he will make a statement. (94145)

[holding answer 18 October 2006]: In 1994, Peugeot received £900,000 for investment in the 306 model, followed by £2 million in 1998 towards the cost of investment to add a third shift at a time of strong demand for its 206 model. In November 2004, a grant of £14.4 million was offered to Peugeot for manufacture of the 207 at Ryton, but the project did not proceed.

The Government also offer various forms of technology grant. Peugeot has participated in consortia which have received grants, although it is not believed that the company has received any direct funding.

The Government are not aware of Peugeot’s UK activities having received any R&D grants direct from European Union institutions. The Government do not routinely collate data regarding grants received by automotive companies elsewhere in the EU from either the EU itself or other Governments.