US: DaimlerChrysler nixes idea of making Korean cars in US factories

DaimlerChrysler AG has denied Thursday market speculation that it's mulling using unused production capacity at Chrysler plants to make Hyundai and Kia vehicles, says Dow Jones Newswires. "It isn't true," DaimlerChrysler spokesman Thomas Froehlich said. He said the company is working on seeing more synergies from its alliances, but "sharing production capacity in the US isn't part of the plan. This speculation is without merit."

bcusack December 15, 2000

DaimlerChrysler AG has denied Thursday market speculation that it’s mulling using unused production capacity at Chrysler plants to make Hyundai and Kia vehicles, says Dow Jones Newswires. “It isn’t true,” DaimlerChrysler spokesman Thomas Froehlich said. He said the company is working on seeing more synergies from its alliances, but “sharing production capacity in the US isn’t part of the plan. This speculation is without merit.”

DaimlerChrysler bought a 10% stake in Hyundai earlier this year. The only current production cooperation in North America between Hyundai and DaimlerChrysler is for a subcompact Dodge model, Froehlich said.

The troubled German-American carmaker has said it will detail a restructuring plan in February aimed at turning around loss-making US arm Chrysler. The company has come under sharp pressure from shareholders to see more synergies from its mergers and acquisitions, including those with Chrysler, Hyundai and Mitsubishi Motors. DaimlerChrysler bought a 34% stake in Mitsubishi earlier this year.