STONE_COLD
13/05/2004, 10h43
SEOUL, South Korea (AP) -- DaimlerChrysler AG has decided to sell its 10.5 percent stake in South Korea's Hyundai Motor Co. and is sharply scaling back other aspects of their 4-year-old partnership, the companies said Wednesday.
The two automakers have agreed to "realign the alliance in order to reflect more realistically current market conditions," the companies said in a joint statement.
Hyundai has been one part of DaimlerChrysler CEO Juergen Schrempp's effort to build a global auto giant with a presence in major markets worldwide.
But that effort suffered a blow last month when DaimlerChrysler distanced itself from another Asian partner, Mitsubishi Motors, by refusing to put more money into the debt-laden company. It still owns a 37 percent stake in Mitsubishi, however.
Under Wednesday's agreement, Hyundai Motor will take over DaimlerChrysler's 50 percent stake in Daimler Hyundai Truck Corp., a joint venture truck engine-making factory in South Korea. The two sides also scrapped their earlier agreement to build a truck-making joint venture.
DaimlerChrysler spokesman Othmar Klein said the 50 percent truck stake is worth $45 million.
The two automakers have agreed to "realign the alliance in order to reflect more realistically current market conditions," the companies said in a joint statement.
Hyundai has been one part of DaimlerChrysler CEO Juergen Schrempp's effort to build a global auto giant with a presence in major markets worldwide.
But that effort suffered a blow last month when DaimlerChrysler distanced itself from another Asian partner, Mitsubishi Motors, by refusing to put more money into the debt-laden company. It still owns a 37 percent stake in Mitsubishi, however.
Under Wednesday's agreement, Hyundai Motor will take over DaimlerChrysler's 50 percent stake in Daimler Hyundai Truck Corp., a joint venture truck engine-making factory in South Korea. The two sides also scrapped their earlier agreement to build a truck-making joint venture.
DaimlerChrysler spokesman Othmar Klein said the 50 percent truck stake is worth $45 million.