Tax Incentives for the Transition to Electromobility in Greece

Authors: Panagiotis Pothos, Emmanouela Vitsa, Eleana Gkotsoulia, KG Law Firm By virtue of Law 4710/2020, which was published on 23 July 2020 in the Government Gazette (Bulletin A΄ 142) in the Hellenic Republic, a number of tax related provisions and incentives for the development of the electromobility were introduced. The below summarize the most important tax related issues of the newly introduced provisions: Exemptions from the calculation of the employment income The compensation for travel expenses paid by the employer for company reasons, including the compensation for the cost of…

Volkswagen AG to Open a New Development Centre

After postponing Volkswagen AG’s final decision to open a new automobile factory in Turkey, Bulgaria sees a chance to be considered as a potential destination again. The postponement of the decision is due to Turkey’s military action in northern Syria. Possible locations for a Volkswagen factory in Bulgaria are Sofia and Plovdiv

Electric Vehicle Plant

At the end of 2019, Memorandum of Intent for building an Electric Vehicle Plant was signed by and between the Executive Director of InvestBulgaria Agency and the executive directors of the Korean-Chinese company Songuo Motors and Italian – Hadid Holding. The two companies announced their intention to invest USD 200 million in Bulgaria to build a plant for the production of electric vehicles.

Hyundai Motor Group and other South Korean Companies Interested in Investment in the Automotive Industry in Bulgaria

Bulgaria and South Korea are negotiating on the building of Automobile Factory and Autonomous Vehicles test centre of Hyundai and Battery Factory of another South Korean company (whose name was not disclosed) for Electric cars on the territory of Bulgaria. The investment in the Battery Factory shall be over EUR 1.5 billion and Bulgaria is in competition for the investment together with other two countries. Bulgaria has provided possible locations for the factories to the two South Korean companies.

Sale of 100% of the Shares in MARIBORSKA LIVARNA MARIBOR d.d.

Slovenian Bank Assets Management Company is selling MARIBORSKA LIVARNA MARIBOR d.d. is a manufacturer of different tools and mechanical treated aluminium die-castings designed for the automotive, electrical and machine industry.

Possible Sale of CIMOS d.d.

The Italian financial fund Palladio Holding Group is planning to sell Cimos (unofficially reported). Cimos is one of the names closely related to the strong automotive industry as the group and its subsidiaries supply turbo, powertrain and kinematics solutions to the main automotive producers like Ford, Volvo, PSA, BMW, Audi and VW, and their suppliers Honeywell, Bosch Mahle Turbo Systems, BorgWarner Turbo Systems and TRW.

BDK Advokati Advises on Valvoline’s Acquisition of FAM

Ellis Enterprises, the Serbian subsidiary of lubricant producer Valvoline (NYSE: VVV), closed on Monday, 1 July 2019 the acquisition of the core manufacturing assets of Serbian lubricant producer FAM, Krusevac for EUR 9.5 million. Closing occurred upon approval of the Serbian Competition Commission and the approval of the transaction terms by six banks which are major creditors of FAM. Valvoline will initially employ 115 employees of FAM and will invest more than EUR 5.7 million in the modernisation of the plant.

TAB Looking for a Buyer Again

According to the Finance newspaper, Nova Ljubljanska Banka is checking for interest for the successful Slovenian battery manufacturer Tovarna Akumulatorskih Baterij (TAB) again. It is not known to what which potential buyers the prospectus has been sent.

Volkswagen AG to Open a New Automobile Factory in Eastern Europe

Volkswagen AG is planning to open a new automobile factory in Eastern Europe and Bulgaria is a potential destination. Possible locations for a Volkswagen factory in Bulgaria are Sofia and Plovdiv. The new factory shall produce cars from different brands under the Volkswagen group, including Volkswagen, Audi, Skoda, SEAT and others. Initially, Skoda Karoq and SEAT Ateca will be produced by moving their current production from Skoda's factory in Kvasiny, Czech Republic. It is expected Volkswagen to decide in which country to build the new factory at the beginning of May. Sources say that the direct capital investment will be over EUR 1.4 billion and will include the opening of initially, 5,000 work places, plus hundreds of engineers, followed by thousands of work places as suppliers and service industries.

Invitation to Tender for the Purchase of Claims Held Against the Fori Group

With the transfer of assets in 2014 from Slovenian banks, the Slovenian Bank Assets Management Company (BAMC) became a creditor of the companies TT Okroglica d.d., Fori d.o.o., Fori Skupina d.o.o., Elvel d.o.o., Emo-Tech d.o.o. (the “Fori Group”). At this point, BAMC is considering disposing of its collateralized loan exposure in the companies in the total amount of EUR 18,1 million. The deadline for submission of indicative offers is 23 April 2019 and the deadline for submission of binding offers 26 June 2019.

Valvoline to Acquire FAM’s Production Plant and Related IP Rights

BDK Advokati represented Ellis Enterprises d.o.o. a subsidiary of Valvoline (NYSE: VVV), in the acquisition of the production facility and IP rights from Serbian lubricant producer FAM for a purchase price of EUR 9.5 million. As a result of this acquisition, Valvoline will add to its portfolio FAM’s products which are well-known in the Balkan region.

KALO & ASSOCIATES Assisted YURA Corporation

LO & ASSOCIATES team, led by partner Jola Gjuzi, assisted the South Korean global supplier, YURA Corporation. YURA Corporation was granted the status "strategic investor" by the Albanian Government following a thorough examination of the project by AIDA. Yura will be producing electric, electronic and ignition components for the automotive industry and will employ a great number of Albanian citizens.