COMMISSION DECISION (EU) 2016/2068
of 29 July 2013
on State aid SA.35611 (13/C) that France plans to implement in favour of the PSA Peugeot Citroën SA Group
(notified under document C(2013) 4971)
(Only the French text is authentic)
(Text with EEA relevance)
1.
PROCEDURE
2.
DESCRIPTION
2.1.
THE PSA GROUP
|
2008 |
2009 |
2010 |
2011 |
2012 |
Past turnover |
54 356 |
48 417 |
56 061 |
59 912 |
55 446 |
2.2.
THE DIFFICULTIES EXPERIENCED BY THE PSA GROUP
2.2.1. ONGOING CONTRACTION OF THE EUROPEAN AUTOMOTIVE MARKET SINCE 2007
2.2.2. A COMPETITION STRUCTURE THAT DOES NOT FAVOUR GENERAL MANUFACTURERS
2.2.3. THE STRUCTURAL HANDICAPS OF THE PSA GROUP
2.3.
THE AID MEASURES
2.3.1. THE STATE GUARANTEE OF BPF'S BOND ISSUES
(%) |
||
|
At 16.10.2012 |
Median 16.9-16.10 |
Bond maturing on 25.9.2015 |
5,04 |
5,52 |
Bond maturing on 24.6.2015 |
4,84 |
5,57 |
Bond maturing on 25.2.2016 |
5,37 |
6,23 |
Hypothetical three-year bond (interpolated yields) |
5,09 |
5,54 |
Three-year fungible Treasury bond |
0,34 |
0,39 |
Interpolated three-year data State spread of 24 basis points |
Spot |
Median of bond yields |
|
|
16.10.2012 |
12.7-16.10 |
16.9-16.10 |
Three-year fungible Treasury bond (OAT) |
0,34 % |
0,35 % |
0,39 % |
Estimated State spread after guarantee |
0,24 % |
0,24 % |
0,24 % |
BPSA interest rate after guarantee (a) |
0,58 % |
0,59 % |
0,63 % |
Cost of the guarantee (b) |
2,60 % |
2,60 % |
2,60 % |
Total estimated cost of the guaranteed issues (a) + (b) |
3,18 % |
3,19 % |
3,23 % |
BPSA secondary market yield interpolated over three years |
5,09 % |
5,23 % |
5,54 % |
Amount of State aid involved (EUR million) |
401 |
429 |
486 |
Source: BNP Paribas Global Markets, Datastream. |
2.3.2. AID FOR THE ‘50CO
2
CARS’ PROJECT
Costs |
Totals |
Eligible(15) |
FR |
IR |
ED |
CEI No 1 |
[260 -330]* |
233 524,91 |
1 328,79 |
140 622,53 |
91 573,59 |
CEI No 2 |
[50 -110]* |
71 068,57 |
|
34 945,01 |
36 123,56 |
Total |
[300 -400]* |
304 593,48 |
1 328,79 |
175 567,54 |
127 697,15 |
2.4.
THE PSA GROUP RESTRUCTURING PLAN
2.4.1. RESTRUCTURING MEASURES IN RELATION TO THE INDUSTRIAL PRODUCTION SYSTEM
2.4.2. MEASURES RELATING TO THE PSA GROUP'S ADMINISTRATIVE STRUCTURE
2.4.3. THE 50CO
2
CARS R&D PROJECT
2.4.4. THE PSA GROUP BUSINESS PLAN
|
2013 |
2014 |
2015 |
2016 |
2017 |
Median Scenario |
[55 000 -60 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[65 000 -70 000 ] |
Unfavourable scenario (100 000 fewer vehicles per annum) |
[55 000 -60 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
Favourable Scenario (100 000 more vehicles per annum) |
[57 000 -62 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[65 000 -70 000 ] |
[65 000 -70 000 ] |
|
2013 |
2014 |
2015 |
2016 |
2017 |
Median scenario |
[40 000 -45 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
Unfavourable scenario (100 000 fewer vehicles per annum) |
[40 000 -45 000 ] |
[40 000 -45 000 ] |
[40 000 -45 000 ] |
[40 000 -45 000 ] |
[45 000 - 50 000 ] |
Favourable scenario (100 000 more vehicles per annum) |
[40 000 -45 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
2.4.5. THE COMPENSATORY MEASURES INITIALLY NOTIFIED BY THE FRENCH AUTHORITIES
2.4.5.1.
Further reductions of PSA Group investment
(a)
Discontinuation of production of the Citroën C6 — Peugeot 607 models
(b)
Discontinuation and non-renewal of the Bipper/Nemo model
(c)
diesel engines of more than two litres
2.4.5.2.
Transferring capacity at the Sevelnord plant to a competitor
2.4.5.3.
Discontinuation of production and development of the hybrid plug-in technology
2.4.5.4.
Commitment to a maximum penetration rate for BPF
|
Ceiling rate H2 2012* |
Flexibility |
Proposed maximum rate* |
Germany |
[…] |
+ 1,0 |
[…] |
Austria |
[…] |
+ 1,0 |
[…] |
Belgium |
[…] |
+ 1,0 |
[…] |
Italy |
[…] |
+ 1,0 |
[…] |
Spain |
[…] |
+ 1,0 |
[…] |
Netherlands |
[…] |
+ 1,0 |
[…] |
Portugal |
[…] |
+ 1,0 |
[…] |
Switzerland |
[…] |
+ 1,0 |
[…] |
France |
[…] |
+ 1,0 |
[…] |
United Kingdom |
[…] |
+ 1,0 |
[…] |
G5 aggregate(24) |
33,3 |
+ 1,0 |
34,3 |
M5 aggregate(25) |
27,3 |
+ 1,0 |
28,3 |
G10 aggregate(26) |
32,4 |
+ 1,0 |
33,4 |
2.4.6. ESTIMATION OF RESTRUCTURING COSTS AND THEIR FINANCING
2.5.
BPF'S VIABILITY PLAN
2.5.1. FINANCING PLAN
Table 8
Cash flow situation of BPF over the restructuring period*
2.5.2. PROFITABILITY AND SOLVENCY
Graph 1
History of BPF's profitability
(%) |
||||||
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
Return on equity (RoE)* |
8,0 |
[4-6] |
[6-8] |
[8-10] |
[10-12] |
[10-12] |
2.5.3. PENETRATION RATE
|
PV |
CV |
||||
% |
2010 |
2011 |
2012 |
2010 |
2011 |
2012 |
France |
||||||
Segment B |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Segment C |
||||||
Segment D |
||||||
Segment H |
||||||
CV |
||||||
Total |
||||||
UK |
||||||
Segment B |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Segment C |
||||||
Segment D |
||||||
Segment H |
||||||
CV |
||||||
Total |
||||||
Germany |
||||||
Segment B |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Segment C |
||||||
Segment D |
||||||
Segment H |
||||||
CV |
||||||
Total |
||||||
Italy |
||||||
Segment B |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Segment C |
||||||
Segment D |
||||||
Segment H |
||||||
CV |
||||||
Total |
||||||
Spain |
||||||
Segment B |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Segment C |
||||||
Segment D |
||||||
Segment H |
||||||
CV |
||||||
Total |
||||||
Total G5 |
||||||
Segment B |
[28-33] |
[31,6-36,6] |
[33,1-38,1] |
[26,5-31,5] |
[29-34] |
[34,4-39,4] |
Segment C |
[20,4-25,4] |
[21,6-26,6] |
[22,7-27,7] |
[18,9-23,9] |
[25,5-30,5] |
[29,1-34,1] |
Segment D |
[20-25] |
[17,8-22,8] |
[18,5-23,5] |
[20,6-25,6] |
[20,9-25,9] |
[22,2-27,2] |
Segment H |
[12,4-17,4] |
[28,6-33,6] |
[0,0-2,5] |
[20,7-25,1] |
[19,2-24] |
[14,6-19,6] |
CV |
[24,6-29,6] |
[25,9-30,9] |
[24,9-29,9] |
[26,7-31,7] |
[28-33] |
[29,6-34,6] |
Total |
[25,1-30,1] |
[25,4-30,4] |
[26,8-31,8] |
[25,1-30,1] |
[26,7-31,7] |
[30,6-35,6] |
Segment B |
Ion, 107, 1007, 206+, 207, 208, Czero, C1, C3, DS3, C2, C3 Picasso |
|||||
Segment C |
307, 308, 3008, 4008, 5008, RCZ, C4, C4 Picasso, C4 Aircross, DS4, Xsara Picasso |
|||||
Segment D |
407, 4007, 508, 807, C5, DS5, C8, C Crosser |
|||||
Segment H |
607, C6 |
|||||
CV |
Partner, Bipper, Expert, Boxer, Berlingo, Nemo, Jumper, Jumpy |
2.5.4. THE GROUP'S DEPENDENCE
2.6.
THE COMPLAINT
3.
REASONS FOR INITIATING THE PROCEDURE
3.1.
VIABILITY PLAN FOR BPF
3.2.
PSA GROUP RESTRUCTURING PLAN
3.2.1. DOUBTS ABOUT A RETURN TO VIABILITY
3.2.2. DOUBTS ABOUT THE COMPENSATORY MEASURES
4.
COMMENTS BY FRANCE ON THE OPENING DECISION
4.1.
ON THE AMOUNT OF AID
4.2.
ON BPF'S VIABILITY
4.3.
ON THE PSA GROUP'S RETURN TO VIABILITY
4.3.1. ON THE ASSUMPTIONS OF MARKET TRENDS
|
2013 |
2014 |
2015 |
2016 |
2017 |
Size of the European market (Europe 30), forecast by IHS Global Insight in April 2013 (thousands of vehicles) |
13 497 |
13 926 |
14 768 |
15 371 |
15 991 |
PSA's European market share* |
[10-14] % |
[10-14] % |
[10-14] % |
[9-13] % |
[9-13] % |
|
2013 |
2014 |
2015 |
2016 |
2017 |
Median scenario in the opening decision* |
[55 000 -60 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[65 000 -70 000 ] |
Updated median scenario* |
[55 000 -60 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[59 000 -64 000 ] |
[60 000 -65 000 ] |
Updated unfavourable scenario (100 000 fewer vehicles per annum)* |
[55 000 -60 000 ] |
[60 000 -65 000 ] |
[60 000 -65 000 ] |
[60 000 -70 000 ] |
[60 000 -65 000 ] |
|
2013 |
2014 |
2015 |
2016 |
2017 |
Median scenario in the opening decision* |
[40 000 -45 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
[45 000 - 50 000 ] |
Updated median scenario* |
[40 000 -45 000 ] |
[40 000 -45 000 ] |
[45 000 -50 000 ] |
[40 000 -45 000 ] |
[40 000 - 45 000 ] |
Updated unfavourable scenario (100 000 fewer vehicles per annum)* |
[35 000 -40 000 ] |
[40 000 - 45 000 ] |
[40 000 - 45 000 ] |
[40 000 - 45 000 ] |
[40 000 - 45 000 ] |
|
2013 |
2014 |
2015 |
2016 |
2017 |
Median scenario in the opening decision |
[…] |
[…] |
[…] |
[…] |
[…] |
Updated median scenario |
[…] |
[…] |
[…] |
[…] |
[…] |
Updated unfavourable scenario (100 000 fewer vehicles per annum) |
[…] |
[…] |
[…] |
[…] |
[…] |
Updated higher stress scenario (200 000 fewer vehicles per annum) |
[…] |
[…] |
[…] |
[…] |
[…] |
4.3.2. ON THE LEVELS OF USE OF THE PSA GROUP'S CAPACITY AND THE DIVERSIFICATION OF ITS SALES
4.3.3. ON THE ROLE PLAYED BY THE 50CO
2
CARS PROJECT IN RESTORING THE PSA GROUP'S VIABILITY
(a)
On the coherence of the 50CO
2
Cars project with the PSA Group restructuring plan
(b)
On the Commission's doubts in its opening decision
(i)
Technological backwardness in hybridisation technologies
(ii)
The coherence of the resources implemented for 50CO
2
Cars with the rest of the restructuring plan
(iii)
Positive impact on the Group's sales and profitability
PSA Group (comparison with respect to ‘counterfactual’ scenario C) |
Scenario A (50CO2Cars with aid) |
Scenario B* (50CO2Cars without aid) |
|
eDCT |
NPV at [10-13]*% |
EUR [0-10] million |
– EUR [60-70] million |
NPV at [13-15]*% |
– EUR [50-60] million |
– EUR [90-100] million |
|
Accessory facade |
NPV at [10-13]*% |
+ EUR [30-40] million |
– EUR [20-30] million |
NPV at [13-15]*% |
– EUR [20-30] million |
– EUR [60-70] million |
4.4.
ON THE COMPENSATORY MEASURES
4.4.1. GENERAL COMMENTS ON THE CHARACTERISATION OF THE PLANNED MEASURES AS GENERAL COMPENSATORY MEASURES AND THEIR EXTENT
4.4.2. SPECIFIC COMMENTS ON THE VARIOUS COMPENSATORY MEASURES PROPOSED
(a)
On the reduction of additional investment by the PSA Group
(i)
The early discontinuation of the Citroën C6 model and the non-renewal of the Citroën C6 and Peugeot 607 models
(ii)
The early discontinuation and non-renewal of the Bipper/Nemo model
(iii)
The discontinuation of diesel vehicles of more than two litres
(b)
On the transfer of capacity at the Sevelnord plant to a competitor
(c)
On the discontinuation of development and production of the hybrid plug-in technology
(d)
On setting a maximum penetration rate for BPF
5.
COMMENTS FROM INTERESTED PARTIES
5.1.
COMMENTS FROM THE ANONYMOUS THIRD PARTY
5.2.
COMMENTS FROM OPEL (AND THE GM GROUP)
5.3.
COMMENTS FROM FIAT
5.3.1. RESTORING VIABILITY
5.3.2. THE 50CO
2
CARS PROJECT
5.3.3. THE IMPACT OF THE GUARANTEE ON THE MARKET
5.3.4. THE COMPENSATORY MEASURES
5.4.
COMMENTS FROM TOYOTA
5.5.
COMMENTS FROM THE PSA GROUP
6.
COMMENTS BY FRANCE ON THE INTERESTED PARTIES' COMMENTS
6.1.
COMMENTS ON THE ANONYMOUS THIRD PARTY'S COMMENTS
6.2.
COMMENTS ON THE GM GROUP'S COMMENTS
6.3.
COMMENTS ON FIAT'S COMMENTS
6.3.1. RESTORING THE PSA GROUP'S VIABILITY
6.3.2. THE AID ELEMENT IN THE GUARANTEE AND ITS IMPACT ON THE MARKET
6.3.3. THE COMPENSATORY MEASURES
6.3.4. THE 50CO
2
CARS PROJECT
6.4.
COMMENTS ON TOYOTA'S COMMENTS
6.5.
COMMENTS ON PSA'S COMMENTS
7.
AMENDMENTS TO THE NOTIFICATION BY THE FRENCH AUTHORITIES
7.1.
COMMITMENT TO RESTORE THE PSA GROUP'S LEVEL OF INDEBTEDNESS
(EUR million) |
||||
|
2013 |
2014 |
2015 |
2016 |
Maximum Net Debt A |
[…]* |
[…]* |
[…]* |
[…]* |
Maximum Net Debt B |
[…]* |
[…]* |
[…]* |
[…]* |
7.2.
COMMITMENT IN RELATION TO BPF'S PENETRATION RATE
Penetration rate (%) |
[…]* |
[…]* |
[…]* |
[…]* |
[…]* |
[…]* |
[…]* |
[…]* |
[…]* |
[…]* |
Increase in the Guarantee Fee (basis points)* |
[10-20] |
[20-30] |
[40-50] |
[70-80] |
[90-120] |
[120-150] |
[150-180] |
[180-210] |
[200-230] |
231 |
7.3.
COMMITMENT TO REFRAIN FROM ACQUISITIONS
7.4.
COMMITMENT IN RELATION TO THE FINANCING MARGIN GRANTED TO DEALERS
7.5.
COMMITMENT IN RELATION TO THE 50CO
2
CARS PROJECT
7.6.
IMPLEMENTATION AND INDEPENDENT EXPERT
8.
ASSESSMENT OF AID
8.1.
EXISTENCE OF AID WITHIN THE MEANING OF ARTICLE 107(1) TFEU
8.1.1. STATE GUARANTEE TO THE BANKING SUBSIDIARY OF THE PSA GROUP
8.1.1.1.
On the use of State resources
8.1.1.2.
On the existence of an economic advantage
|
16.10.2012 |
12.7-16.10 |
16.9-16.10 |
Three-year fungible Treasury bond (OAT) |
0,34 % |
0,35 % |
0,39 % |
Estimated State spread after guarantee |
0,24 % |
0,24 % |
0,24 % |
BPSA interest rate after guarantee (a) |
0,58 % |
0,59 % |
0,63 % |
Cost of the guarantee (b) |
2,60 % |
2,60 % |
2,60 % |
Total estimated cost of the guaranteed issues (a) + (b) |
3,18 % |
3,19 % |
3,23 % |
BPSA secondary market yield interpolated over three years |
5,09 % |
5,23 % |
5,54 % |
Amount of State aid involved (EUR million) |
401 |
429 |
486 |