uropean Union regulators on Tuesday extended
a probe into 96 million euros ($140 million) that France plans to
grant PSA Peugeot-Citroen SA to develop a hybrid diesel car.
The European Commission wants to make sure that the aid does not
break EU rules on state subsidies. ``The Commission has doubts
whether Peugeot-Citroen and its partners really need this aid to
produce less-polluting cars,'' the EU's executive body said in a
France plans to grant the money to Europe's second-biggest car
maker and 16 partners as part of total research and development
costs of 470 million euros ($685 million) to develop the low-fuel
``The Commission strongly supports the development of more
environmentally friendly cars,'' said EU Competition Commissioner
Neelie Kroes. ``However, we have to ensure that the aid is not spent
on R&D that would have been carried out by Peugeot-Citroen in any
event, or which its competitors may carry out without state aid.''