SOUTH KOREA: DaimlerChrysler/Hyundai alliance on the cards?

DaimlerChrysler and the Hyundai Motor Company will hold company board meetings to approve an alliance between the two car manufacturers, according to Hyundai`s president. Reports of the alliance however, from the Yonhap News Agency, brought a muted response from DaimlerChrysler who were unavailable for comment. Hyundai Motor, a unit of the Hyundai Group, were also playing it safe by not confirming the meeting, set for June 24th.

bcusack June 19, 2000

DaimlerChrysler and the Hyundai Motor Company will hold company board meetings to approve an alliance between the two car manufacturers, according to Hyundai`s president.

Reports of the alliance however, from the Yonhap News Agency, brought a muted response from DaimlerChrysler who were unavailable for comment. Hyundai Motor, a unit of the Hyundai Group, were also playing it safe by not confirming the meeting, set for June 24th.

Also, news that Hyundai was in the process of making a separate bid for Daewoo, prior to the June 26th deadline, was neither confirmed nor denied by a Hyundai spokesman.

However, by creating a consortium with DaimlerChrysler in bidding for Daewoo, Hyundai hopes to overcome Korean Government opposition to Daewoo being swallowed up by its larger competitor.