BRUSSELS (AP) -- German luxury car maker Daimler AG won European Union permission Thursday to receive a euro111.5 million ($157.09 million) subsidy from the Hungarian government for a new Mercedes-Benz factory.
Daimler plans to invest euro800 million to build the Kecskemet plant near Budapest which will create up to 2,500 new jobs.
The European Commission must check that large state payments to companies don't harm competition. It said it could approve the subsidy -- a cash payment and a corporate tax allowance -- because it will help develop the economy of one of Europe's poorer regions.
