DaimlerChrysler to set up JV with Hyundai-paper
Feb 15, 2002 12:00 PM
U.S.-German auto giant DaimlerChrysler AG will launch a joint venture plant to make trucks and other commercial vehicles in South Korea, a local newspaper said. DaimlerChrysler will pay 500 billion won ($382 million) to Hyundai Motor Co to gain a 50 percent stake its Chonju plant in southwestern Korea for the joint venture, the newspaper said, citing a high-ranking source at Korea's largest automaker. "On May 6, Chairman Chung Mong-koo and DaimlerChrysler Chairman Juergen Schrempp plan to sign and announce a memorandum of understanding on a strategic tie-up," the source said. The source said the Chonju plant will be an independent company and take on 300 billion won in debt. Production will include diesel trucks for the Chinese market. DaimlerChrysler, which owns a 10 percent stake in Hyundai, formed a diesel engine joint venture last year.
