Report

EU to probe Porsche taxpayer grant to build new Macan

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Porsche won't put its second crossover into production for another year, but the Macan is already causing some controversy. Not the Porsche-has-sold-its-soul controversy that accompanied the launch of its big brother Cayenne, but the why-is-the-German-government-subsidizing-it kind.

According to Reuters, the European Commission has launched an investigation into the German government's €43 million grant (over $53 million U.S.) for Porsche's Leipzig, Germany, plant expansion, on the grounds that such assistance may be anti-competitive. The recent move by Volkswagen to consolidate its ownership of Porsche likely played into the decision, according to the report.

Porsche's Leipzig plant, where the company currently builds the Cayenne and Panamera, is undergoing a €500 million expansion ($629 million) in advance of the Macan. The facility just produced its 500,000th vehicle this month.

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