Hyundai Motor will ask Beijing Automotive Industry Holding Co. this week to withdraw from an alliance pact with DaimlerChrysler, which was reached last month, a Hyundai Motor spokesman told Dow Jones Newswires on Tuesday.
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The memorandum of understanding (between Beijing Automotive and DaimlerChrysler) runs counter to the contract signed with the Chinese company in April, said the spokesman, Jake Jang, adding: “We hope our two partners withdraw from the MOU.”
According to Dow Jones, Hyundai Motor claims the pact between the Chinese company and DaimlerChrysler runs counter to an exclusive passenger car agreement between Hyundai and Beijing Automotive. The contract between Hyundai and the Chinese firm states Beijing Automotive won’t establish a separate joint venture with a foreign company during its alliance period with Hyundai Motor, the spokesman told the news agency.
Dow Jones noted that, in early September, DaimlerChrysler signed a €1 billion deal with Beijing Automotive to produce Mercedes sedans in China at DaimlerChrysler’s joint venture Beijing Jeep Corp.
The news agency added that Hyundai Motor formed a joint venture with Beijing Automotive earlier this year and the venture produces various car models, including Hyundai’s Sonata sedans.
