BMW Gets EU Aid For Leipzig Plant.

The European Union Commission granted a $371 million aid package to German car maker BMW to build a plant in Leipzig, Germany, but turned down an additional $57 million. The extra aid "is considered incompatible" with state aid rules, the Commission said in a statement. Under EU rules for the automobile sector, aid granted to companies must not exceed the savings they would have made by moving elsewhere.

The Munich-based car maker intends to produce its 3-series model in Leipzig and will start production in 2005. The factory will employ around 5,500 people.