- Continuation of “World Engine Project”
- Continuation of joint procurement activities
- Termination of commercial vehicle engine alliance and of talks regarding
commercial vehicle joint venture
- DaimlerChrysler AG plans to sell 10.5% stake in Hyundai Motor Co
Seoul/Stuttgart - Hyundai Motor Company and DaimlerChrysler AG announced
today that they have agreed to realign their strategic alliance to better
reflect their respective companies’ current business and strategic objectives.
Under the agreement Hyundai Motor will acquire DaimlerChrysler’s 50 percent
stake in Daimler Hyundai Truck Corporation, an existing commercial vehicle
engine joint venture in Korea. The parties have also agreed to terminate certain
associated licensing and other commercial arrangements, including the talks
regarding a comprehensive commercial vehicle joint venture in Korea.
Going forward, the companies’ strategic alliance will include the following:
- Joint development and manufacture of a family of four cylinder petrol
engines between Hyundai Motor, DaimlerChrysler and Mitsubishi Motors Corporation
(the “World Engine Project”)
- Distribution of Hyundai Motor’s Atos and Verna (Accent) passenger car models
into the Mexican market through DaimlerChrysler’s affiliate
- Joint procurement activities
- Supply by DaimlerChrysler of medium duty engines (OM906) to Hyundai Motor
for medium buses
It is anticipated that these projects will have substantial benefits for both
parties.
Since commencement of the strategic alliance in September 2000, there have
been significant changes in the global commercial vehicle and automotive
markets, which have resulted in a re-prioritization of both companies’
respective strategic objectives. To better address these conditions, the
companies determined it was mutually beneficial to realign the alliance in order
to reflect more realistically current market conditions. The companies expect
that these measures will better position the strategic alliance to deliver value
and to pursue additional projects going forward.
Commenting on the agreement, Hyundai Motor Vice Chairman Kim Dong Jin said,
“We have been partners with DaimlerChrysler for nearly four years now and
believe that the realignment of the strategic alliance is an important step
forward to better position both companies to capitalize on opportunities in the
changed market environment now facing us.”
Dr. Eckhard Cordes, Member of the DaimlerChrysler Board of Management and
Head of Commercial Vehicles Division commented, “Over the last few years, we
created multiple strategic options for sustainable and profitable growth of our
business in Asia. We are now implementing the strategy with good progress. In
light of these developments, DaimlerChrysler and Hyundai Motor have agreed to
primarily focus on a collaborative relationship on a per-project basis in the
future.”
Both companies have agreed that successful cooperation on a per-project basis
is possible without a shareholding relationship. Therefore, as part of the
realignment of the Alliance, DaimlerChrysler has decided to sell its 10.5% stake
in Hyundai Motor. DaimlerChrysler may sell such shares at any time and under
some circumstances will do so within certain specified periods of time.
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