Hyundai has said that it is planning to launch its commercial vehicle joint venture with DaimlerChrysler during the first half of 2003. The joint venture will be formed via the spinning off of Hyundai Motor’s commercial vehicle operations and forms a significant part of DC’s Asian market penetration strategy.
DC is expected to invest around 400 million euros in the venture. The new venture incorporated in the previously established Daimler Hyundai Truck Corporation (DHTC) – which includes the engine joint venture – will also produce trucks, buses and components.
DaimlerChrysler’s commercial vehicle division will thus gain direct access to a commercial vehicle producer which occupies the top position in the third largest market in Asia. DHTC is the clear market leader by a substantial margin, in the domestic Korean commercial vehicle sector. Additionally, both partners are already building an engine plant together in Chonju, which will commence production of the Mercedes-Benz 900 series in 2004.
DC has also announced plans to purchase 43% of the spun-off commercial vehicle business of Mitsubishi Motors for approximately 760 million euros. That venture is expected to be formed early in 2003.