European Union state aid regulators approved a project worth 20.5 million euros ($27.73 million) in French support for carmaker Renault.
The French automaker is set to develop a diesel hybrid technology, which will cut diesel use and carbon dioxide emissions for vans. The European Commission approved the French state aid, which consisted of 3.8 million euros in grants, 3.4 million euros for industrial research and 13.1 million euros for experimental development.
This project should result in a substantial reduction in (vehicles’) fuel consumption and carbon dioxide emissions, thereby contributing to the EU’s targets for innovation, the environment and energy security, without affecting competition,” EU Competition Commissioner Joaquin Almunia said.
Meanwhile, Renault still back the all-electric approach on its passenger cars, without any reference to future plans for developing hybrid models or technologies.