Hyundai Backs Down from Statement

9 May 2000

Do three no's make a yes?

    Seoul - On Sunday, Hyundai Motor Company, Korea's largest auto
manufacturer, announced that they had entered into a three way partnership
with Mitsubishi and DaimlerChrysler to build a 1-litre world car beginning
in 2002.  The story detailed the potential market and need for such a car,
and how, by using common key components, there would be great cost savings
and efficiency.  The announcement also included a proposed breakdown of how
many vehicles each manufacturer would produce.

    But, almost immediately after the Hyundai announcement, DaimlerChrysler
denied any such interest on their part.  Hyundai countered by trying to say
that because they released the news a bit prematurely, DaimlerChrysler
simply didn't have time to properly notify their PR firm.  Then yesterday,
Monday, Mitsubishi said that no final deal had been struck with Hyundai and
that talks were very preliminary.

    And now, today, a Hyundai spokesperson admitted that there was no deal, and
that he is confused as to why Hyundai's top management would have made such
an announcement.  One theory as to the reason is that the announcement
would help Hyundai's position on the stock market (Hyundai shares have
plunged to nearly half their value over the last six months).  A similar
willfully wrong announcement in the US might be cause for serious action
from the SEC.

    So, the obvious question (in light of all the feigned denials regarding
Rover), now that all three parties state that there is no deal between them
to produce a 1-litre world car: how soon will it be available at the
dealership?

MJR