Blog: Dave LeggettDaimlerChrysler Hyundai tensions

Dave Leggett | 14 October 2003

The current tensions between 'alliance partners' DaimlerChrysler and Hyundai Motor (in which DC has a 10.65% stake) don't augur well for future close cooperation between the two companies. The blow-up over DC's alleged violation of HM's 'exclusive' deal to make cars with Beijing Automotive sounds quite serious from HM's side. Can Beijing Automotive keep both deals alive without upsetting either DC or HM? Which way will Beijing Automotive jump?

One thing though. These tensions seem to challenge the widely held assumption that DC and HM will get progressively closer together over time. Maybe HM's controlling shareholders fear losing control over the company. That's possibly not the best mindset and background for the planned (and delayed) truck joint venture.


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