DaimlerChrysler and Hyundai last week officially launched their joint commercial vehicle engine venture.

According to published reports in Korea, where Hyundai is based, the venture is called DaimlerHyundai Truck Corp. The venture plans to produce 100,000 truck and bus engines a year starting in 2004.
The inauguration ceremony was held at Hyundai's technology center in Namyang. The engines will be built at Hyundai's bus/truck plant in Jeonju and will build DaimlerChrysler's latest 900-series diesel engines for sale in Korea and abroad.
Eckhardt Cordes, president of DaimlerChrysler in charge of the commercial division, said the commercial engine joint venture is the first step in the collaboration between the two companies and would involve the transfer of key technologies.
DaimlerChrysler owns just over 10% of Hyundai and has an option to buy another 5% after 2003.
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 has filed suit against both companies.