DaimlerChrysler said on Friday that it will decide in December between two locations for an engine plant for a new small car that it is to produce with Mitsubishi Motors, Associated Press (AP) reported.
The plant, which will create approximately 500 jobs, will be located either at Koelleda in eastern Germany or at Nyergesujfalu in Hungary, DaimlerChrysler said, according to AP.
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The two companies will invest $224 million in the new plant, AP said. D-C and 37 percent-owned Mitsubishi plan to form a joint venture company to operate the plant in 2003.
AP said that the European Union is considering whether, under rules on state aid, the German government can invest $59 million in the plant if it is built in Koelleda.
The plant will produce engines for small passenger cars, which are to be built at the former Volvo/Mitsubishi joint venture plant in Born, Netherlands.
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