No L 123/52 Official Journal of the European Communities 4. 5. 89 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 21 December 1988 concerning aid from the French Government to an undertaking in the motor vehicle sector — Peugeot SA (Only the French text is authentic) (89/305/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the iBuropean Economic Community, and in particular- the first subparagraph of Article 93 (2) thereof;- Having given the parties concerned notice to submit their - comments, in- accordance with the above Article, and - having rtegard to those comments, Whereas By two letters dated 30 April 19885, received on the same - date, the French Government notified the Commission of aid grants to the Peugeot SA-Citroén Group. The aid was granted in_the form of three loans from the Industrial Modernization Fund (FIM): — a loan of FF 200 million at 9,75 % granted on § July 1984 to the Société Mécanique Automobile de I'Est (SMAE) for the manufacture at Caen of a-completely new gearbox, 20 % lighter than existing gearboxes.. The investment taken into account for the FIM-loan was FF 1016 million, — a loan of FF 500 million at 9,75 %. granted on-30 May - 1984 to the Société Automobile Peugeot for the construction of a fully automated, polyvalent body assembly unit-and automated assembly and sub-as- sembly “lines at Poissy, and . the introduction of advanced process technology for the manufacture of the front and rear axles. The investment taken into account for the FIM loan was FF 1 167 000 million, — a loan of FF 500 million at 8,75 % granted on 12 July 1985. to the Société Automobile Citroén to develop, for a new, small car with low fuel consumption, optimized industrial plant, over 60 % of which uses high-technology materials,, and computer-assisted production control techniques ; a considerable degree of flexibility is obtained resulting in productivity gains. The investment taken into account for the FIM loan was FF 1150 million. In Decision 85/378/EEC (), the Commission specified that FIM loans were aid within the meaning of Article 92 (1) of the EEC Treaty and-that they -could be awarded: provided that all significant cases were notified to it in advance. The loans were initially awarded at various -rates .of interest for a maximum of 10 years with a grace period of up to two years. Their purpose is to assist innovatory- investment  especially in  the  installation of high-technology ~machinery and equipment, the development of -office automation and-biotechnology. () OJ No L 216, 13. 8. 1985, p. 12.