20.2.2002 Official Journal of the European Communities L 48/25 COMMISSION DECISION of 18 July 2001 on the State aid which Germany is planning to implement for Automobilmanufaktur Dresden GmbH (notified under document number C(2001) 2348) (Only the German text is authentic) (Text with EEA relevance) (2002/143[EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on interested parties to submit their comments pursuant to those provisions ('), Whereas: I. PROCEDURE After a meeting on 8 July 1999, Germany gave noti- fication by letter dated 5 July 1999, registered as received on 9 July, of planned aid in respect of an investment project by Automobilmanufaktur Dresden GmbH (AMD), a wholly owned subsidiary of Volks- wagen AG (VW). The Commission addressed additional questions to Germany by letter dated 3 August 1999. After a request from Germany for an extension of the deadline for a reply, Germany partly answered the questions by letter dated 5 October 1999 (registered as received on 6 October) 1999. By letter dated 21 October 1999, the Commission gave its comments. By letter dated 17 November 1999 (registered as received on 18 November 1999), Germany provided additional information. By letter dated 3 February 2000, the Commission informed Germany that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. Its objections relate to the claim by Germany that the exemption in Article 87(2)(c) of the EC Treaty applies, the mobility of the investment, a number of assumptions in the cost-benefit analysis submitted by Germany that do not appear to comply with Commission practice, and the notified amount of aid and aid intensity. () O] C 78, 18.3.2000, p. 8. (4) The Commission decision to initiate the procedure was published in the Official Journal of the European Communi- ties (). The Commission called on interested parties to submit their comments. The Commission received no comments from interested parties. By letter dated 3 April 2000 (registered as received on 4 April 2000), Germany submitted comments on the opening of the investigation procedure. After a letter requesting clarifications was sent to Germany on 13 September 2000, an on-site visit on 28 and 29 November 2000, a reminder from the Commission dated 22 December 2000 and a request from Germany for an extension of the deadline for a reply dated 17 January 2001, to which the Commission agreed on 23 January 2001, Germany sent additional information by letter dated 2 February 2001 (registered as received on 7 February 2001). II. DETAILED DESCRIPTION OF THE AID The Volkswagen group is active in the motor vehicle sector and sells passenger cars through its four main brands: Volkswagen, Audi, Seat and Skoda. In the Euro- pean Union and the central and eastern European coun- tries (CEECs), Volkswagen operates plants in Germany, Belgium, Spain, Portugal, Slovakia, Hungary and the Czech Republic. The company decided to produce under the brand Volkswagen a completely new model that would compete with the Audi A8, the Mercedes S Class, the BMW 7 Series and Jaguar (limousine). The beneficiary of the aid is AMD. VW developed a concept known as ‘gliserne Manufaktur’ (transparent factory) which allows the customer to observe the final assembly of his vehicle on site by highly skilled personnel. The assembly plant is to be built in a town which is characterised by a combination of engineering, tradition and culture. Germany announced that, following a comparative assessment of different sites, VW had decided to locate the transparent factory in Dresden. (® See footnote 1.