Hyundai, Daimler Enter Venture to Make Truck Engines
The venture will be based at Hyundai's Chonju plant in western Korea and will initially make 900-series truck engines. Annual production in 2004 will be 50,000 engines, to be mounted on Hyundai trucks, according to Bloomberg.
Analysts told Reuters that the venture will benefit both companies, allowing Hyundai to learn about advanced diesel engines while giving Daimler, the largest truck maker, the chance to expand its market share in Asia.
Korea will become the third base in Asia for the Stuttgart, Germany-based company. DaimlerChrysler already makes vehicles in China, and is in talks with South-East Motor Corp., Taiwan's biggest truck maker, about forming a venture to manufacture trucks in China.
The engines from the venture will be exported under DaimlerChrysler's trademark, while earnings from the sale of the engines will be shared equally. They will build four versions of the diesel engine, ranging from 4.3 liters to 7.2 liters, Bloomberg reported.
The engines, which can satisfy stricter emission requirements, are already used on the Vario and Atego vehicles. Hyundai said that it would mount them on its 2.5-ton to 8.5-ton trucks and large buses.
Reuters noted that DaimlerChrysler said it is hopeful that the connections with Hyundai will be extended in the near future.
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