Agreement Allows DCX to Sell Hyundai Stake and Still Work Together
In an effort to keep its global market strategy alive DaimlerChrysler announced yesterday that it will be continuing its strategic alliance with Hyundai Motor Company.
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| DaimlerChrysler has announced that it will continue its alliance with Hyundai. A future version of the Korean automaker's Elantra will feature the engine produced by a JV between the two companies and Mitsubishi. (Photo: Trevor Hofmann, Canadian Auto Press) |
The realignment will include the cooperative World Engine Project, a new-generation 4-cylinder development and manufacturing project which also includes Japanese automaker Mitsubishi, as well as various joint procurement activities. The decision to continue working together does not save the commercial vehicle engine alliance, mind you, while DCX still plans to sell its 10.5 percent stake in the Korean manufacturer based on agreement between the two companies that "successful cooperation on a per-project basis is possible without a shareholding relationship."
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| The alliance will include the cooperative World Engine Project, with a new 4-cylinder to replace Hyundai's current 138 horsepower unit. (Photo: Trevor Hofmann, Canadian Auto Press) |
Hyundai will buy out DaimlerChrysler's 50 percent stake in Daimler Hyundai Truck Corporation, a JV commercial vehicle engine plant already in operation in South Korea.
DaimlerChrysler has also committed to distribute Hyundai Motor's Atos and Verna (Accent) passenger cars within Mexico market through an affiliate of the German automaker.
Lastly, DaimlerChrysler has agreed to supply Hyundai with medium duty engines (OM 906) for medium buses.