BRUSSELS (AP) -- Fiat SpA won EU authorization Wednesday for an Italian government euro46 million ($61 million) subsidy to help it build cars in Sicily.
The European Commission said it could approve the state payment because it would maintain jobs in a region with a low standard of living and high unemployment without allowing Fiat expand output or giving it an unfair advantage over other car manufacturers.
Fiat plans to use the money as part of a euro319 million ($421.8 million) project to extend and transform its plant in Termini Imerese where it wants to build a new Lancia-branded car to replace the current Ypsilon model.
European Union regulators said the project would not give a huge boost to Fiat's market share or production capacity.
