No L 20/14 Official Journal of the European Communities 28.1.93 COMMISSION DECISION of 23 December 1992 relating to a procéeding pursuant to Article 85 of the EEC Treaty (IV/33.814 — Ford/Volkswagen) (Only the English and German texts are authentic) (93/49/EEC) THE COMMISSION' OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation No 17 of 6 ‘February 1962, First Regulation implementing Articles 85 and 86 of the Treaty (*), as last amended by the Act of Accession of Spain and Portugal, and in particular Articles 6 and 8 thereof, Having regard to the notification of an agreement relating to multi-purpose vehicles made on 4 February 1991 by Ford of Europe Inc., Brentwood, United Kingdom and Volkswagen AG, Wolfsburg, Germany, Having regard to the summary of the notification published (?) in accordance with Article 19 (3) of Regu- lation No 17, Having consulted the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas: 1. THE FACTS A. The proceedings (1)  This Decision relates to a ‘foundation agreement’ between the two motor vehicle manufacturers Ford of Europe (Ford) and Volkswagen AG (VW) on the setting up of a joint venture company (JV) for the development and production of a multi- purpose vehicle (MPV) in Portugal. The parties subsequently submitted Joint Venture Agreements executing the foundation agreement (‘the agreement’). B. The parties (2) Ford is a subsidiary of the Ford Motor Company, Dearborn, USA, whose principal business is the manufacture, assembly and sale of motor vehicles and related parts. Ford Motor Company’s (*) O] No 13, 21. 2. 1962, p. 204/62. () OJ No C 182, 13. 7. 1991, p. 8. 3) *) ) © @ worldwide turnover for 1990 was US$ 97,6 billion. In 1990 the Ford group was rated fifth in the Community passenger car market, with a market share of 11,6 %. VW was the leading car manufacturer in the Community in 1990 with a market share of 15,5 % representing sales of 2 049 000 units. Its turnover in 1990 was DM 65,3 billion. Ford and VW are already cooperating in a joint venture in South America (Autolatina). This cooperation does not involve the production of MPVs. C. The agreement The agreement commits Ford and VW to the joint development, engineering and manufacture of a MPV. The two partners will set up a JV (Auto- europa) which will be owned in equal shares and jointly controlled. Ford and VW will invest a total of approximately US$ 2,9 billion in the whole pro;ect, all costs relating to the development, engineering and manufacture of the MPV will be shared equally. It is intended that the JV will last at least as long as the MPV’s projected life cycle of about 10 years. The plant which will house the JV, is to be built on a green field site near Setabal, Portugal, and will commence its production of MPVs in January 1995. The product development will be predomi- nantly carried out by VW in Germany while Ford will mainly be responsnble for the manufacturlng and plant engineering. The JV will have a capacity of 830 units per day representing an annual production of 190000 units. Both partners will supply engines and transmissions whilst most of the remaining parts will be purchased form external suppliers. The parties have agreed to differentiate their MPVs in order to- preserve their brand image and to make their versions of the MPV distinguishable