DaimlerChrysler, Hyundai link in trouble

15th April 2004, Comments 0 comments

15 April 2004, COLOGNE - A major planned alliance between DaimlerChrysler and Hyundai Motors to jointly build trucks is headed for the rocks amid doubts at the South Korean group about the German-US conglomerate, a German business weekly reported in its Thursday edition. A final decision whether to call off the link-up is to be taken by Hyundai by the end of this month, WirtschaftsWoche said. Quoting company sources, the magazine said profitable Hyundai had cold feet amid worries that DaimlerChrysler would

15 April 2004

COLOGNE - A major planned alliance between DaimlerChrysler and Hyundai Motors to jointly build trucks is headed for the rocks amid doubts at the South Korean group about the German-US conglomerate, a German business weekly reported in its Thursday edition.

A final decision whether to call off the link-up is to be taken by Hyundai by the end of this month, WirtschaftsWoche said.

Quoting company sources, the magazine said profitable Hyundai had cold feet amid worries that DaimlerChrysler would use the deal to seek greater influence over Hyundi, as is currently happening to the troubled Japanese automotive group Mitsubishi Motors.

WirtschaftsWoche said a DaimlerChrysler spokesman's only response was that the talks with Hyundai were ongoing but the strategic necessity of an alliance in truckmaking was less than before.

DaimlerChrysler has an investment stake of just more than 10 percent in Hyundai Motors, which is part of the Hyundai industrial group. DaimlerChrysler's stake in Mitsubishi Motors amounts to 37 percent.

Kim Yong-Duk, vice president of KEB Commerz Investment Trust Management in Seoul, told the magazine that Hyundai did not want to become "just another element in the shaky World Inc. of Herr Schrempp [DaimlerChrysler chief executive Juergen Schrempp] but rise to the top by its own efforts".

The magazine said a separate project to jointly manufacture truck engines was also unlikely to be carried out, but the two groups would persist in plans to make car engines together.

That product is likely to go into mass production this year and is destined to power Hyundai, Mitsubishi and Chrysler cars.

DPA
Subject: German news 

0 Comments To This Article