In the first step in their commercial vehicle collaboration, DaimlerChrysler and Hyundai have announced a joint venture to produce diesel engines in Korea.
The company, a 50/50 joint venture, is to be incorporated by the end of June. This is the first step in the commercial vehicle joint development proposed last year following the agreement of a strategic alliance between the two companies.
"We decided to launch our commercial vehicle project with Hyundai in the strategically important engine sector because advanced diesel engines are a key competitive factor for success in the global commercial vehicle market," said Dr. Eckhard Cordes, DaimlerChrysler Board member responsible for commercial vehicles.
The new company will build DaimlerChrysler's 900 series diesel engines in Korea. Currently the 900 series engine is only produced in Germany and Brazil for the European, North and South American markets. This series includes 4.3, 6.5 and 7.2 liter models. Plans call for the 900 series engine to be used in more than 75% of Hyundai 's commercial vehicle line.
The initial investment in plant and equipment is approximately $180 million. The engines will be produced in a new facility adjacent to the Hyundai plant in Chonju.
The two companies also have agreed to cooperate on initiatives to enhance Hyundai's capabilities in product development, production and marketing.
DaimlerChrysler holds a 10.46 percent stake in Hyundai.
The DaimlerChrysler/Hyundai joint venture has driven U.S.-based Bering Truck, which has had an agreement to distribute Hyundai trucks in the United States since 1998, to suspend operations. Bering announced plans Thursday to take legal action against Hyundai.
The company, a 50/50 joint venture, is to be incorporated by the end of June. This is the first step in the commercial vehicle joint development proposed last year following the agreement of a strategic alliance between the two companies.
"We decided to launch our commercial vehicle project with Hyundai in the strategically important engine sector because advanced diesel engines are a key competitive factor for success in the global commercial vehicle market," said Dr. Eckhard Cordes, DaimlerChrysler Board member responsible for commercial vehicles.
The new company will build DaimlerChrysler's 900 series diesel engines in Korea. Currently the 900 series engine is only produced in Germany and Brazil for the European, North and South American markets. This series includes 4.3, 6.5 and 7.2 liter models. Plans call for the 900 series engine to be used in more than 75% of Hyundai 's commercial vehicle line.
The initial investment in plant and equipment is approximately $180 million. The engines will be produced in a new facility adjacent to the Hyundai plant in Chonju.
The two companies also have agreed to cooperate on initiatives to enhance Hyundai's capabilities in product development, production and marketing.
DaimlerChrysler holds a 10.46 percent stake in Hyundai.
The DaimlerChrysler/Hyundai joint venture has driven U.S.-based Bering Truck, which has had an agreement to distribute Hyundai trucks in the United States since 1998, to suspend operations. Bering announced plans Thursday to take legal action against Hyundai.
media brand
0 Comments
See all comments