DaimlerChrysler has announced that it is selling its 10.5% in Hyundai Motor back to the Korean car manufacturer.
Hyundai will also buy DC’s 50% stake in the Daimler Hyundai Truck Corporation, a commercial vehicle engine joint venture in Korea.
The two companies have decided to work together in the future on a project-by-project basis only. The ‘World Engine Project’, a collaboration between DC, Hyundai and Mitsubishi to produce a series of four-cylinder petrol engines, will continue, as will the distribution of Hyundai’s Atos and Verna (Accent) into the Mexican market through DC channels. Joint procurement activities, established as part of the original partnership, will also continue.
This follows last month’s news that DC would not invest further capital in Mitsubishi Motors, and would cease all financial aid for the company following poor results.