2008/710/EC: Commission Decision of 16 April 2008 on State aid C 23/07 (ex N 118/07) which the United Kingdom is planning to implement for Vauxhall Motors Ltd (notified under document number C(2008) 1333) (Text with EEA relevance)
Date: 2008-04-16
Institutions: European Commission
Subjects: State aid, United Kingdom, aid to undertakings, control of State aid, in-service training, motor vehicle industry

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COMMISSION DECISION

of 16 April 2008

on State aid C 23/07 (ex N 118/07) which the United Kingdom is planning to implement for
Vauxhall Motors Ltd

(notified under document number C(2008) 1333)

(Only the English text is authentic)

(Text with EEA relevance)

(2008/710/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

Having regard to the Treaty
and in particular
Community,
Article 88(2) thereof,

establishing the European
subparagraph of
the

first

The United Kingdom submitted its comments by letters
dated 10 August 2007 (registered with the Commission
on that date as ref. A/36735) and 29 January 2008
(registered with the Commission on that date as ref.
A/1724). A meeting between Commission services and
the UK authorities in the presence of the beneficiary of
the aid was held on 10 January 2008.

Having regard to the Agreement on the European Economic
Area, and in particular Article 62(1)(a) thereof,

(5)

The Commission received comments from interested
parties.
to the United
forwarded the comments
Kingdom, which was given the opportunity to react.

It

Having called on interested parties to submit their comments
to those provisions (1) and having regard to their
pursuant
comments,

Whereas:

(1)

(2)

(3)

1. PROCEDURE

By letter dated 28 February 2007, registered with the
Commission on 6 March 2007, the United Kingdom
notified the Commission of the abovementioned aid for
General Motor Corporation’s (GM) Vauxhall assembly
plant at Ellesmere Port. The Commission requested
complementary information by letter dated 4 April
2007 (ref. D/51586), to which the authorities replied
by letter dated 22 May 2007.

By letter dated 10 July 2007, the Commission informed
the United Kingdom that it had decided to initiate the
procedure laid down in Article 88(2) of the Treaty in
respect of the aid.

The Commission Decision to initiate the procedure (the
opening Decision) was published in the Official Journal of
the European Union (2). The Commission called on
interested parties to submit their comments.

(6)

(7)

(8)

2. DETAILED DESCRIPTION OF THE AID

2.1. The beneficiary

The aid recipient is Vauxhall Motors Ltd, Ellesmere Port,
UK (Vauxhall), a car manufacturing plant which is an
operating unit of Vauxhall Motors Ltd and part of GM.
It manufactures cars from the Opel model range (which
are sold in the United Kingdom under the Vauxhall
badge), currently the Astra which will
terminate in
2009. Vauxhall is located in Ellesmere Port in Cheshire
in the North-West region of England (3) and employs
close to 2 200 workers.

On 17 April 2007, GM announced that Vauxhall was
amongst the European GM sites that had been selected to
produce the Global Compact Vehicle, the model that will
replace the Astra.

2.2. The training programme

Vauxhall
intends to implement a wide-ranging training
programme for its workforce. The training is to be
broken down into eight
training areas, of
which the following six are considered by the United
Kingdom to be eligible for training aid:

individual

(1) OJ C 243, 17.10.2007, p. 4.
(2) See footnote 1.

(3) Vauxhall

is located in an area which until 31 December 2006
qualified for regional aid under Article 87(3)(c) of the EC Treaty.
Since 1 January 2007, the region is an unassisted area.

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(a) Production System Training: This concerns training in
all elements of Vauxhall’s production and quality
control systems. The objective is to give staff a
better understanding of the build process and thus
generate better standard, reduce defects and improve
problem solving;

of a mentor. There is no contractual obligation on
either party to maintain the working relationship at
the end of the training.

(b) Integrated Training Plan: This part of

System’

the training
concerns the implementation of the ‘Global Manufac­
(GMS) which incorporates best
turing
practices and technologies into a common manufac­
turing system for GM operations. Through a series of
objectives
Standardisation,
Built-in Quality, Short Lead Time, Continuous
Improvement) the training will allow Vauxhall staff
to build future generations of cars in a better way;

Involvement,

(People

(9)

Outside the six training areas intended to benefit from
the notified State aid are the training areas ‘Apprentices’
(namely an apprenticeship scheme for young people),
‘Model Change’ (which is the training needed to adapt
to the production of
the Global Model Vehicle) and
activities related to ‘Training & Performance Appraisal’.
In addition, Vauxhall undertakes ‘routine training’ in the
skills necessary for the plant’s normal operations.

(c) Cultural Change: The objective of this training is to
instil a sense of common purpose and collective
responsibility in the workforce and to create a team
culture based on excellence in production;

(10) According to the information provided by the UK, the
training intended to be covered by aid is to consist
mainly of general
training, with some elements of
specific training (4). The training plan is to be implemen­
ted over a six years period (2007 to 2012 included) and
will concern all employees at Vauxhall. The United
Kingdom has assured the Commission that the aid will
only be granted after
it has been cleared by the
Commission.

(d) Dual Skilling: The purpose of

this training is to
develop a flexible workforce by allowing staff with
a primary skill in mechanical engineering to develop
electrical skills and, conversely, to allow those with
primary skills in electrical engineering to acquire
mechanical skills;

2.3. The aid

(11)

The aid is to be given in the form of a direct grant of
GBP 8 784 767 payable in six yearly instalments over the
duration of the training programme. The aid is to be
implemented as an individual aid from the North West
Regional Development Agency
(Renaissance House,
Centre Park, Warrington WA1 1XB).

(e) Lean Manufacturing: This is a project to ensure that
the principles and techniques of lean manufacturing
are embedded in the workforce and that employees
are fully aware of the benefits of applying these to the
manufacturing process at Vauxhall. A central part of
training under this heading will be the secondment of
staff to another GM plant outside the UK;

a

is

(f) Undergraduates: This

programme whereby
for young
Vauxhall organises 12-month courses
(for
university students. The various programmes
‘Finance Analyst’,
example ‘Body Planning Engineer’,
‘General Assembly
combine
Planning
learning and work experience under the supervision

Engineer’)

(12) According to the information provided by the United
Kingdom, the eligible costs for the training and the aid
is broken down as set out in the following table (the
‘Model
the training areas ‘Apprenticeships’,
costs for
Change’ and ‘Routine Training Budget’ are not considered
eligible for training aid by the United Kingdom) (5):

(4) The terms ‘general training’ and ‘specific training’ are used as defined
in Article 2(d) and (e) of Commission Regulation (EC) No 68/2001
of 12 January 2001 on the application of Articles 87 and 88 of the
EC Treaty to training aid (OJ L 10, 13.1.2001, p. 20). Regulation
(EC) No 68/2001 is hereinafter referred to in this Decision as ‘the
Training Aid Regulation’.

(5) The amounts in the table are the final amounts provided by the
United Kingdom in its comments on the opening Decision (as
requested by the Commission. See footnote 3 of
the opening
Decision).

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Projects

General
training —
Eligible costs
in GBP

Specific
training —
Eligible costs
in GBP

Wage
compensation
in GBP

Total eligible
costs in GBP

Aid in GBP

Intensity in %

Product system training

[…] (*)

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

Total

9 870 316

499 367

6 248 338

16 618 021

8 784 767

52,86

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

[…]

Integrated training plan

Cultural change

Dual skilling

Lean manufacturing

Undergraduates

Apprenticeships

Model changes

(*) Confidential information.

(13) According to the United Kingdom, the amounts of the
aid respect the aid intensities for large enterprises under
Article 4 the Training Aid Regulation,
i.e. 50 % for
general training and 25 % for specific training, with an
increase of 3,7 percentage points for training to disad­
vantaged workers, as defined in Article 2(g) of that Regu­
lation (6).

(16)

The incentive effect of the aid for the following training
areas was questioned in the opening Decision: Production
Integrated Training Plan and Under­
System Training,
graduates. The nature of
in
more detail in Section 7.

those doubts is set out

3. GROUNDS FOR OPENING THE FORMAL INVESTI­
GATION

(17)

(14)

In the opening decision, doubts were expressed on the
compatibility of the aid with the common market on the
grounds set out in sections 3.1 and 3.2.

3.1. Incentive effect of the aid

(15)

For the reasons set out in more detail in Section 7, the
‘Assessment’ Section,
the training may be considered
compatible with the common market only if it creates
a necessary incentive for the funded training,
in the
absence of which the training would not
take place.
Training which is part of the normal operations of an
undertaking and for which market forces alone should
provide sufficient incentive does not qualify for training
aid.

(6) At present, 37 % of Vauxhall workers are considered to be disad­
vantaged workers. They fall mainly into the category of persons
older than 45 years who have not attained an upper secondary
education. However, as the training is to run over a six years
period and as the exact number of disadvantaged workers benefiting
from the training will be known only at
time the training is
delivered, the UK authorities intend to apply a general increase of
aid intensity of 3,7 % across the board. The UK authorities have
committed themselves to verifying the actual number of disad­
vantaged workers in each training project ex post and to correct
the applied aid intensities accordingly.

3.2. The distinction between general and specific
training

the Vauxhall

the different parts of

For
training
programme the UK authorities have indicated whether
they consider the training to be general or specific and,
consequently, which maximum aid intensity should apply
in accordance with Article 4 of the Training Aid Regu­
lation. The qualification made by the United Kingdom as
regards the following training areas was nevertheless
questioned in the opening Decision: Production System
Training, Integrated Training Plan, Cultural Change and
Lean Manufacturing. The nature of those doubts is set
out in more detail in Section 7.

4. COMMENTS FROM INTERESTED PARTIES

(18)

The Commission received comments from the interested
parties listed in the Annex. The comments were largely
similar and focussed on general aspects without going
into the details of the aid. No comments were received
from competitors of Vauxhall.

(19)

comments of

The
summarised as follows:

the

interested parties may be

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(a) many parties have stressed that Vauxhall is located in
an area which suffers from a skills shortage and a
persistent situation of above average unemployment.
They believe that the planned training programme
could make a valuable contribution to the region as
a whole;

(b) the interested parties have also argued that

the
training will provide skills which are common to
the automotive industry, if not to the wider manu­
facturing industry. The training will
thus provide
transferable skills and should consequently largely
be considered as general training. The transferable
character of the skills means that the whole region
will benefit from the training at Vauxhall;

(24)

(c) all

interested parties consider in substance that the
aid is compatible with the common market and urge
the Commission to take a favourable view of the aid.

5. COMMENTS FROM THE UNITED KINGDOM

5.1. Incentive effect

It

training which provides its staff with a set of rigidly
standardised methods for each task.
is based on
learning by rote rather than on a deeper understanding
of the process. This routine training provides the skills
necessary for the normal operation of the plant and will
be carried on in parallel with the training programme. By
contrast, the training programme is incremental to the
routine training and aims at providing the workforce
with skills which exceed the operational needs of the
forces
plant and what could be justified by market
alone. The United Kingdom also provided details on
the contents of both the routine training programme
and of the planned Production System Training (8).

goes

Programme

Integrated Training Plan: GMS training has been given in
the past, and Vauxhall has consistently met internal GM
group requirements on GMS compliance (9). Vauxhall
should be able to continue to meet
these standards
within its routine minimum training. The Integrated
Training
of
production and what is needed to meet the GM group
standards. The purpose is to make the workforce go
beyond the
their
assigned job functions and to help them gain a deeper
understanding of the principles underlying the manufac­
turing process. Because of the significant costs involved,
this non-essential training would not be provided within
Vauxhall’s normal training budget.

training needed to simply fulfil

the needs

beyond

(20)

(21)

Regarding the incentive effect, the United Kingdom has
argued that the skills necessary to sustain production,
and which would consequently be provided even
training
without aid, are provided by the
provided to staff, complemented by additional training
as necessary when car models are changed. Regarding
the routine training, the United Kingdom has indicated
that
the exceptional
expenditure for model change training, remained stable
at an average of GBP […]/year between 2002 and
2007 (7).

the annual expenditure, without

routine

By contrast, the training programme referred to in Recital
8 aims at providing the workforce with skills which go
far beyond the needs to maintain competitiveness and
which would consequently not be justified by market
forces alone. The training programme is distinct from
the routine training programme at Vauxhall and from
the specific training that will be provided in connection
with the decision to manufacture the new Global
thus not
Compact Vehicle at Vauxhall. The aid will
simply
training but
provide a necessary incentive for additional training.

essential operational

subsidise

(22) More specifically on the various training areas of the
training programme addressed in the opening Decision.

(23)

Production System Training: The United Kingdom has
routine
explained that Vauxhall

an annual

applies

(7) The routine training budget (model change training excluded): […].

(25) Undergraduates: Although this training has been given in
the past without aid,
its benefit to Vauxhall has been
severely limited by Vauxhall’s inability in recent years
their graduation.
to recruit any undergraduates after
The Undergraduates
requires
permanent staff to spend considerable time training the
students,
is therefore liable to be discontinued without
the aid.

programme, which

5.2. Distinction between general and specific

training

(26)

In response
the United
to the opening Decision,
Kingdom has made the following comments regarding
the qualification of general and specific training within
the different training areas.

(8) Concretely, routine training is based on the jobholder assimilating
the requirements of his particular job post as recorded in a set of
basic documents. This job specific training is complemented by
recurrent courses given to all staff or specific groups of employees
the work at Vauxhall. Examples of such
on general aspects of
training is ‘5S’
‘PDCA &
PPS’ (Processes to ensuring that each task is completed and identified
‘Pull Systems’ (Andon and supply chain
problems do not reoccur),
training) or ‘Handling Conflict’
in the
(dealing with harassment
workplace).

(Principles of workplace organisation),

(9) All GM plants are assessed annually as to their level of compliance
with GSM standards. The evaluation standards and pass grade vary
from year to year. In 2007, Vauxhall achieved […]. However,
in
order to meet group standards for 2008, Vauxhall will need to
achieve […].

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(27)

(28)

(29)

(30)

Production System Training: The skills provided within this
training are widely transferable within the automotive
industry or light manufacturing sector in general. All
trainers and typically
training is provided by external
(namely machinery
concerns
which is not
specific to Vauxhall but widely used
across different industries (10). The United Kingdom has
provided detailed examples of the content of this training
to illustrate that it is indeed transferable.

third party equipment

Integrated Training Plan: The GMS is not a proprietary
simply the internal GM
manufacturing process but
branding (used to give the workforce the impression of
consistent set of courses dedicate to the facility) of a set
of generic manufacturing methods, based on techniques
pioneered by Japanese manufacturers and today generally
applied across the automotive industry and other sectors.
Although courses are closely linked to practical elements
of the manufacturing process, this is due to the need to
contextualise
to convey the
training in order
underlying general skills to the workers.

the

training is not

focussed on
Cultural Change: This
Vauxhall’s corporate culture but aims at conveying
general behavioural
to
change. All training will be devised and delivered by
external consultants using generic training packages.

into the

attitudes

insights

Lean Manufacturing: The purpose of this training is to
make the workforce aware of the general principles of
lean manufacturing which underpin the practical skills
covered by other parts of the training programme. This
is a theoretical training which is entirely distinct from the
staff’s day-to-day work in the production process and will
not cover the build or production process. Indeed, the
intention is to remove the workers from their ordinary
work environment and to train them in a Simulated
Work Environment (11) or to let them observe lean prin­
ciples applied in other ‘benchmark’ plants.

6. THE UNITED KINGDOM’S COMMENTS ON THE
OBSERVATIONS OF THE INTERESTED PARTIES

(31)

The comments of the interested parties were forwarded
to the United Kingdom, which did not make any
comments.

(10) For example, the Production System Training concerning the body
shop will cover amongst other topics. Fanuc robotics, Siemens
all
and
control
provided by trainers external to Vauxhall.

Perceptron measurement

systems,

systems

(11) The Simulated Work Environment

is a much simplified
model production line in which a reduced-scale model car is built
in a few steps. It bears no relation with the real production process,
but is designed to give the trainees hands-on experience of general
issues of the design and layout of a production process.

(SWE)

(32)

(33)

(34)

7. ASSESSMENT OF THE AID

7.1. Qualification as State aid

the Treaty,

to Article 87(1) of

‘… any aid
Pursuant
granted by a Member State or through state resources
in any form whatsoever which distorts or threatens to
distort competition by favouring certain undertakings or
the production of certain goods shall, insofar as it affects
trade between Member States’ be incompatible with the
common market unless such aid may be justified under
Article 87(2) or (3) of the Treaty.

The notified aid should be considered to constitute State
aid within the meaning of Article 87(1) of the Treaty.
The funding takes the form of a grant from the general
budget of the North West region, and is thus funded
from state resources. The aid is selective as it is limited
to Vauxhall. It is likely to distort competition within the
common market since, by relieving it of a significant part
of the costs of the training, the measure will provide
Vauxhall with an advantage over other competitors not
receiving aid. Finally, the market for motor vehicles is
characterised by extensive trade between Member States.

7.2. Legal basis for the assessment

The United Kingdom notified the aid as a grant of indi­
vidual aid under Article 5 of the Training Aid Regulation
which provides that when the amount of aid granted to
one enterprise for a single training project exceeds EUR 1
million, the aid is not exempted from the notification
requirement. It is noted that the aid amounts to GBP
8 784 767 and is therefore in excess of EUR 1 million,
it is to be paid to one enterprise, and the training project
is a single project. Therefore, the notification requirement
applies to the aid, and it has been respected by the
United Kingdom.

(35) When assessing an individual training aid which does not
qualify for the exemption laid down in Article 3 of the
in line with previous
Training Aid Regulation and,
decisions (12), an individual assessment of
the aid on
the basis of Article 87(3)(c) of the EC Treaty. However,
for the purposes of this individual assessment, reliance is
made, by analogy, on the provisions of the Training Aid
Regulation
for
in particular
exemption criteria laid down in Article 4 thereof.

conditions

and

the

(12) See Commission Decision 2006/938/EC of 4 July 2006 on State
aid C 40/05 (ex N 331/05) which Belgium is planning to give to
Ford Genk (OJ C 366, 21.12.2006, p. 32) and Commission
Decision 2007/612/EC of 4 April 2007 on State aid C 14/06
which Belgium is planning to implement
for General Motors
Belgium in Antwerp (OJ L 243, 18.9.2007, p. 71). This is in line
with Recital 16 of the Training Aid Regulation.

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7.3. Compatibility with the common market

7.3.1. Incentive effect

the Commission,

(36) As stated in the opening Decision, and in line with the
it should be
established practice of
assessed whether the aid is necessary to undertake the
training in question. The necessity of the aid is a general
condition for
finding the aid compatible with the
common market (13). If the aid does not lead to addi­
tional training, it cannot be considered to facilitate the
economic development of certain economic activities or
of
certain economic areas within the meaning of
Article 87(3)(c) of the Treaty nor to correct the market
imperfections that lead companies to underinvest in the
training, as referred to in Recital 10 of the Training Aid
Regulation.

(37)

The Commission notes that the training necessary for the
introduction of the new Global Compact Vehicle model,
as well as the basic routine training, are excluded from
the expenses claimed as eligible for training aid in the
notification.

(38)

In the light of the comments submitted by the United
Kingdom in the course of the formal investigation, the
Commission has concluded as follows for the different
parts of the training programme.

(39)

(40)

7.3.1.1. P r o d u c t i o n s y s t e m t r a i n i n g

In the opening Decision, the Commission considered that
this
training appeared to be necessary to ensure
Vauxhall’s normal operations, which should provide
incentive to undertake the
Vauxhall with sufficient
training without
doubts were
expressed as to whether
the aid was necessary for
Vauxhall to undertake the Production System Training.

aid. Consequently,

Further to the opening Decision, the United Kingdom
submitted substantiated comments which show that the
training which is necessary for the operation of the plant
is provided as part of the annual routine training. The
Production System Training, although it also relates to
manufacturing skills, deepens the routine training and
expands it
that are not
to cover categories of staff
covered under the routine training. As referred to in
Recital 20,
it is noted that the annual routine training
budget has remained stable during the period from 2002

to 2007, which is an indication that the normal level of
routine training is sufficient for the needs of Vauxhall’s
normal operations. Consequently, the training that is to
be provided as part of the Production System Training
exceeds what Vauxhall would in any event need to do
even without the aid.

(41) Accordingly, it should be found that the aid will provide

an incentive for this training area.

7.3.1.2. I n t e g r a t e d t r a i n i n g p l a n

(42)

(43)

(44)

In the opening Decision, the preliminary view was taken
that training into GMS appeared essential to Vauxhall’s
normal operations and consequently it is likely that it
would be undertaken without aid. Accordingly, doubts
aid would be
to whether
expressed as
were
necessary for Vauxhall
to undertake the Integrated
Training Plan. These doubts were strengthened by the
fact that Vauxhall would need to meet a higher level of
GMS compliance in 2008 (namely […] against the […]
internal GM
in 2007)
achieved by Vauxhall
group standards, a fact which could provide Vauxhall
with an incentive to carry out at
the
training without State aid.

least part of

to meet

the

From the United Kingdom’s comments pursuant to the
opening Decision, it emerges that GMS training has been
given in the past and that Vauxhall has managed to meet
the internal GM standards for GMS compliance. This
shows that Vauxhall already has been able to provide
the GMS training necessary for its operations within its
routine training budget.

The need to meet a higher level of GMS compliance in
2008 could provide Vauxhall with an incentive to
provide some additional GMS training. However
the
marginal improvement required is unlikely to provide a
sufficient
incentive for a training programme which
would entail an increase of Vauxhall’s yearly routine
training budget by about 60 % (as the eligible costs for
the Integrated Training Plan are about GBP […]/year, to
be set against the average routine training budget of GBP
[…]/year).

(13) This is reiterated in Recital 11 of the Training Aid Regulation which
clarifies that it must be ‘ensure[d] that State aid is limited to the
minimum necessary to obtain the Community objective which
market forces alone would not make possible […]’.

(45) Accordingly,

the Integrated
it should be found that
Training Programme would not be undertaken without
the aid.

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7.3.1.3. U n d e r g r a d u a t e s

7.3.2.1. P r o d u c t i o n s y s t e m t r a i n i n g

(46)

In the opening Decision,
it was noted that the Under­
graduates programme has been in place for a number of
years without State aid, which could indicate that the
notified aid would not be a necessary incentive for this
training.

(47)

In the comments on the opening Decision, the United
Kingdom explained that, because of budget constraints,
Vauxhall has failed to hire any of the 60 trainees that
have undergone the Undergraduate programme since
2002. The United Kingdom has indicated that the Under­
graduate programme is under budgetary review and liable
to be cut.

(48)

It is accepted that Vauxhall’s inability to internalize the
benefits of
the training and recoup its training costs
strongly reduces its incentive to provide this training
solely from its own resources (14). Consequently,
the
training is
the
likely to be discontinued without
incentive of the aid.

7.3.2. Distinction between general and specific training

(49)

(50)

The terms specific training and general
training are
defined in Article 2(d) and (e) of the Training Aid Regu­
lation. Specific training ‘involves tuition directly and prin­
cipally applicable to the employee’s present or future
position in the assisted firm and provides qualifications
which are not or only to a limited extent transferable to
other firms or fields of work’. General training, on the
other hand, provides ‘qualifications that are largely trans­
ferable to other firms or fields of work and therefore
substantially
the
the
employee’. The essential distinction between the two
the
forms of
acquired skills.

the transferability of

employability

training is

improve

thus

of

In the light of the comments submitted in the course of
the
the formal
Commission has
the different
training areas.

investigation by the United Kingdom,

found as

follows

for

(14) A similar point was accepted in Decision 2007/612/EC of 4 April
2007 on State aid C 14/06. See Recital 44 of that Decision.

(51)

(52)

(53)

(54)

This training concerns all manufacturing and quality
control systems at Vauxhall. In the opening Decision, it
was considered that
the Commission lacked sufficient
training
information to allow it
provided under this heading is indeed largely transferable
and thus general training.

to ensure that all

In its comments on the opening Decision, the United
Kingdom has provided detailed information on the
courses within the Production System Training. As
referred to in Recital 27, all those courses are provided
by external trainers and mainly on third party equipment
which is widely used in the manufacturing sector. On the
it should be found that the
basis of that information,
Production System Training will provide skills which
are transferable to other firms or fields of work.

7.3.2.2. I n t e g r a t e d t r a i n i n g p l a n

In the opening Decision,
it was questioned whether
training in what appeared to be a proprietary manufac­
turing system could be considered to provide transferable
qualifications. It was considered that the training, insofar
as it concerned a GM-specific production process, was
likely to be specific.

From the comments received from the United Kingdom
further to the opening Decision it has emerged that GMS
does not cover procedures which are specific to Vauxhall
or to GM, but rather processes which are common to the
automotive sector and also to the wider manufacturing
sector. The purpose of the Integrated Training Plan is to
increase the workforce’s understanding of
the generic
‘lean’ manufacturing
principles underlying a modern,
process. The United Kingdom has substantiated this by
providing details on a number of courses within the
Integrated Training Plan (15).

(55)

In view of the complementary information provided by
the United Kingdom, it should be found that the courses
in the Integrated Training Programme notified as general
training will provide genuinely transferable skills.

(15) Thus, by way of examples, the courses ‘Astra Cockpit Module’ and
‘Fuel and Braking Module’ will use practical steps in the assembly
process as context to illustrate a set of generic skills that can
the task, such as for
improve the quality and performance of
example line layout (devising the optimal relation between flow
of material, position of machinery and movements of
the
worker), optimal
(understanding the need of
having just the right levels of inventory) or ergonomics. Those
skills are, in turn, transferable to a wide range of activities, within
the manufacturing sector or beyond.

inventory levels

(56)

(57)

(58)

(59)

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7.3.2.3. C u l t u r a l c h a n g e

In the opening Decision, the Commission noted that the
UK authorities had not submitted any details on the
content and expected output of
training. The
Commission expressed doubts on the transferability of
skills acquired as part of a ‘cultural change’
training
which appeared to be specifically geared at changing
the corporate culture at Vauxhall.

this

(60)

It should be found that the general principles of lean
manufacturing are transferable to other firms and sectors.

8. CONCLUSIONS

(61)

For the reasons set out above,
it should be concluded
that the notified aid will provide a necessary incentive for
the training programme.

The Commission has noted that this training will be
provided by external consultants using standardised
training packages which have been applied in a diverse
range of business sectors (16). The training will thus not
address issues specific to Vauxhall but focus on generic
issues linked to the management of cultural changes in
the
general. On this basis,
Cultural Change programme will provide skills which
are transferable to other firms or industries.

it should be found that

7.3.2.4. L e a n m a n u f a c t u r i n g

In the notification, the United Kingdom claimed that the
lean manufacturing are generally applied
principles of
across the manufacturing industry and that a deeper
understanding of these principles provides qualifications
which are widely transferable. However, in the opening
Decision, doubts were expressed as to whether
this
training could be dissociated from its practical appli­
cation at Vauxhall and thus whether the qualifications
it provides would be largely transferable by individual
employees to other firms or fields of work.

In its comments, the United Kingdom has shown that the
the car
Lean Manufacturing training will not cover
production process and is not designed to provide staff
with practical skills that are immediately applicable in
their normal
job positions (this could be achieved at
far lesser cost by orthodox training on the work place).
in particular noted that any
The Commission has
practical elements of the training will be based in areas
other than those in which the trainees work in their
regular positions. Lean Manufacturing is a theoretical
course (the practical aspects of lean manufacturing are
mainly incorporated in the Integrated Training Plan) and
staff will be removed from the ordinary work context to
be trained. This off-site training will either be provided in
a Simulated Work Environment or at another GM
plant (17).

(16) Vauxhall

intends to source the training from two companies,

Impact Training Consultancy and Dale Carnegie.

(17) Probably the GM plants in Eisenach (Germany) or in Gliwice
(Poland) which are generally recognised as ‘benchmark’ sites when
it come to lean manufacturing. These sites are generally recognised
as exemplar and regularly visited by parties from other firms or
sectors. It is apparent that the choice of these sites can be motivated
by their general ‘benchmark’ status in relation to the application of
lean manufacturing principles and that it does not necessarily imply
that the training will be GM-specific.

(62)

(63)

(64)

(65)

The United Kingdom has submitted transparent and
the training costs.
itemised documentary evidence of
On the basis of this evidence,
it should be concluded
that the United Kingdom has made a correct assessment
of the eligible costs as set out in Recital 12 above. Speci­
fically,
it should be found that the compensation for
trainees' personnel costs does not exceed the total of
the other eligible costs as required by Article 4(7)(g) of
the Training Aid Regulation.

In view of the considerations set out above, it should be
concluded
correct
distinction between general and specific training as
defined in Article 2 of the Training Aid Regulation.

the notification makes

that

a

The aid intensities comply with Article 4 of the Training
the aid
Aid Regulation.
intensity
complies with
Article 4(4) of that Regulation.

In particular,
for disadvantaged workers

the increase of

The UK authorities have ensured that the notified aid
cannot be cumulated with other State aid to cover the
same eligible costs and that Vauxhall has not received
State aid for which there is an outstanding recovery
order.

(66)

In view of the above, the Commission considers that the
aid is compatible with the common market,

HAS ADOPTED THIS DECISION:

Article 1

The State aid which the United Kingdom is planning to
for Vauxhall Motors Ltd, amounting to GBP
implement
8 784 767,
is compatible with the common market within
the meaning of Article 87(3)(c) of the Treaty.

Implementation of the aid, amounting to GBP 8 784 767,
accordingly authorised.

is

L 236/58

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Official Journal of the European Union

3.9.2008

This Decision is addressed to the United Kingdom of Great Britain and Northern Ireland.

Article 2

Done at Brussels, 16 April 2008.

For the Commission

Neelie KROES
Member of the Commission

ANNEX

List of interested parties that have submitted comments following the opening of the in-depth investigation
procedure pursuant to Article 88(2) of the Treaty

— Northwest Automotive Alliance Ltd
— Andrew Miller MP
— Christine Russel MP
— Cheshire & Warrington Economic Alliance
— Ian Lucas MP
— Wirral Council
— The National Skills Academy for Manufacturing
— European Metalworkers Federation
— Ellesmere Port and Neston Borough Council
— Lady Winterton MP
— The Manufacturing Institute
— Ben Chapman MP
— Cyngor Sir y Fflint/Flintshire County Council
— Confederation of British Industry North West
— Brian Simpson MP
— Cyngor Sir Ddinbych/Denbighshire County Council