COMMISSION CLEARS FRENCH STATE AID FOR TOYOTA'S VALENCIENNES PLANT.

The European Commission has approved aid from the French Government towards Toyota Motor Corp's four billion Franc (USD721 million) plant in Valenciennes, near the Franco-Belgian border, almost exactly one year after the investment was originally announced amidst controversy over the grant and criticism from the UK, which had fielded a rival site.

The aid consisted of 216.9 million French Francs in direct grants and a tax break equivalent to 123 million Francs, or 7.9% of the total planned investment, compared with a maximum 28% allowed under EU rules. France won the investment in the face of stiff competition from Burnaston in the United Kingdom, where Toyota's existing European manufacturing centre is located, and...