Reuters reports that Hyundai Motor Co is denying a media report it has been in discussion with DaimlerChrysler to jointly produce an engine for sports utility vehicles.

The Reuters item says that The Korea Economic Daily quoted an unnamed Hyundai official as saying the two firms were in negotiations to build a joint venture (JV) plant in the United States to make engines for sports utility vehicles (SUVs).

The newspaper article went on to say that discussions would firm up after Hyundai had selected a site for its first vehicle assembly plant in the United States next month.

However, a Hyundai spokesman told Reuters that the speculation over an SUV engine JV is groundless and denied that talks on the subject ween the two companies are taking place.

DaimlerChrysler and Hyundai are neverthelss expected to proceed with an earlier plan to launch a commercial truck making joint venture in Korea.