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| June 27, 2000 | atimes.com | ||
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The Koreas
Hyundai, DaimlerChrysler announce tie-up SEOUL - Hyundai Motor (KSE: 05380) and DaimlerChrysler have announced the formation of a strategic alliance in many key areas, including capital and technology sharing, a joint venture in commercial vehicle production and a consortium for the bidding of Daewoo Motors. The following comprise the gist of the alliance: * DaimlerChrysler will take over a 10-percent stake in Hyundai Motor with a total cash payment of 480 billion won (US$428 million). * DaimlerChrysler and Hyundai will attempt a number of new projects under the strategic alliance including the development of a world car jointly with Mitsubishi Motor. There has already been substantial progress in the development of the world car platform. The two partners have agreed to a variety of technology exchanges to enhance the competitiveness of their small cars, which also includes cooperation in securing parts through a global network and the exchange of management personnel. * The two companies would also consider the issue of DaimlerChrysler joining Hyundai Capital and a new joint venture transmission production firm. * The auto makers have decided to turn the medium- and large-size commercial vehicle (trucks larger than 2.5 tons and buses) business of Hyundai Motor's Chonju commercial vehicle production plant into a 50:50 joint venture. The Hyundai side will provide plant facilities and DaimlerChrysler capital and technology. The Chonju plant has an annual production capacity of 100,000 units. * The two partners will also consider substantial cooperation in the exchange of technology related to fuel injection systems, control and safety systems and other key components. They will also consider the exchange of car engines, the production of DaimlerChrysler commercial cars in the country, along with joint marketing, and sales through the two firms' global outlets. * The two partners will jointly set up a consortium to participate in the bidding for Daewoo Motor in which DaimlerChrysler will take the lead. Hyundai will be able to use Daewoo Motor's operations in East Europe and DaimlerChrysler would be able to normalize Daewoo Motor's operation as soon as possible in case they take over the ailing car maker. Sale procedures of Daewoo Motor began in earnest on Monday with participants submitting proposals. Ford, a GM-Fiat consortium and the Hyundai Motor-DaimlerChrysler alliance submitted proposals to buy Daewoo Motor to the Daewoo restructuring committee. The Daewoo restructuring committee will form a bid assessment committee of around 7 people including the presidents of three creditor banks to select one or two prefered candidates by the end of this month. The final winner will be announced by September at the latest, the restructuring committee said. (Asia Pulse/Yonhap) |
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