Divesture May Put Joint Venture Product Plans on Definite Hold
Whether it's DaimlerChrysler's plan to make top news story on a daily basis or just the result of an automaker in transition, it's difficult to say. Nevertheless, DaimlerChrysler is once again making headlines, now due to its plans to sell its 10.5 percent stake in Hyundai Motor Co.
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| DaimlerChrysler plans to sell its 10.5 percent stake in Hyundai Motor Co., worth an estimaed USD$1 Billion. This may put a halt to future co-developed products the two automakers have been considering. (Photo: Trevor Hofmann, Canadian Auto Press) |
Estimated by a Hyundai spokesman to be worth approximately USD$1 billion via block sale, it is not known whether it will be bought back by the South Korean automaker. Handelsblatt, a German newspaper, reported that industry sources were stating DaimlerChrysler would sell to Hyundai, but a spokesman for Hyundai stated otherwise when interviewed, saying "As far as we know, the German carmaker is seeking to sell the stake via a block sale to other buyers."
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| After announcing that it would keep its 37.3 percent stake in troubled Mitsubishi Motors, DaimlerChrylser hardly needs to maintain a similar cooperative relationship with Hyundai. Mitsubishi will build a sporty version of the next-generation Dodge Dakota (shown) soon. (Photo: DaimlerChrysler Canada) |
What does this divesture mean to DaimlerChrysler-Hyundai product partnerships? No mention of the joint U.S.-based engine plant with Hyundai and Mitsubishi may mean it will continue as planned, but as of Monday plans to form a commercial vehicles JV between the Stuttgart- and Seoul-based automakers seems out of the question.
A DaimlerChrysler board member speaking about the joint venture stated, "There's no sense anymore." Another DaimlerChrysler spokesman commented, "We're still negotiating."
With DaimlerChrysler having confirmed it will not sell its 37.3 percent stake in ailing Mitsubishi Motors, at least not yet, and still planning to go ahead with ongoing plans to share specific platforms and components with the Japanese brand for future Chrysler and Dodge products, it hardly needs a similar cooperative relationship with Hyundai. Still, according to Hyundai it has plans to work with DaimlerChrysler on a "project-by-project basis" rather than an all-out alliance.