| Following last ditch crisis talks, DaimlerChrysler
and Hyundai have finally come to a resolution over their very public six
month old spat.
In an effort to show unity, a joint press conference was held to announce
both carmakers had agreed to realign their strategic alliance to better
reflect their respective companies’ current business.
As a result, Hyundai execs got both their wishes granted as DaimlerChrysler
confirmed plans to sell its 10.5 per cent stake in the South Korean carmaker.
The agreement also signals an end to the troubled commercial vehicle joint
venture that became a focal point in the wrangle between the two companies.
Yet not all bridges between Hyundai and DaimlerChrysler have been burnt.
The new agreement salvaged a number of programmes, including the continuation
of the world engine project, which will see the joint-manufacture of a
family of four-cylinder gasoline engines shared between DaimlerChrysler,
Hyundai and Mitsubishi.
The agreement will also force Hyundai to acquire a 50 per cent stake in
the Daimler Hyundai Truck Corporation. The document also allows Hyundai’s
Atos and Verna/Accent models to be distributed to Mexico through DaimlerChrysler’s
affiliate.
Standing shoulder to shoulder, Hyundai’s vice chairman, Kim Dong
Jin and DaimlerChrysler’s board of management and head of commercial
vehicles division, Dr. Eckhard Cordes, both put brave faces for the media.
Jin said: “We have been partners with DaimlerChrysler for nearly
four years now and we believe the realignment of the strategic alliance
is an important step forward to better position both companies.”
Cordes added: “Over the last few years, we have created multiple
strategic options for sustainable and profitable growth of our business
in Asia. We are now implementing this strategy with good progress.
“In the light of these developments, DaimlerChrysler and Hyundai
have agreed to primary focus on a collaborative relationship on a per-project
basis in the future.”
The simmering feud between the German and South Korean carmakers stems
from last year when DaimlerChrysler signed a €1bn ($1.1bn) deal with
Beijing Automotive to build Mercedes passenger cars in China.
According to Hyundai, the deal violated their 2002 agreement with Beijing
Automotive that prevented the Chinese carmaker from seeking other automotive
partners.
With DaimlerChrysler execs refusing to back down from the Beijing Automotive
agreement, Hyundai chiefs responded by suspending the joint commercial
vehicle project – thought to cost around €400mn ($475mn).
DaimlerChrysler paid €336mn ($400mn) in 2000 for its stake in Hyundai.
It’s thought the German group stands to make around €840mn
($1bn) when it sells its shares in the South Korean carmaker.
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