Hyundai and DaimlerChrysler discuss redefining partnership

SEOUL, South Korea (AP) -- South Korea's biggest carmaker, Hyundai Motor Co., and DaimlerChrysler AG are in talks to scale back their relationship to a more limited partnership.
The negotiations come amid delays in a joint venture to make trucks and engines.
Hyundai filed a report Monday with the Financial Supervisory Service, South Korea's financial watchdog, saying the two carmakers were in the talks. DaimlerChrysler owns a 10-percent stake in Hyundai.
"We are holding talks with DaimlerChrysler to redefine our partnership to an alliance that would be limited to individual projects," Hyundai said in the report.
The two carmakers began their partnership in 2000 when DaimlerChrysler acquired its stake in Hyundai and they agreed to set up a truck-making joint venture and an engine-making plant by the end of 2002.
Those plans have been delayed, and relations further soured when DaimlerChrysler decided to produce its Mercedes Benz sedans with China's Beijing Automotive Industry Holding Co.
Hyundai said in October the Beijing-DaimlerChrysler deal violated its agreement with Beijing Automotive, which obliged the Chinese company not to establish joint ventures with other foreign companies until its alliance with Hyundai expires.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.