Daimler, Mitsubishi, Hyundai ink car engine pact

SEOUL, May 5 Reuters reported that Hyundai Motor Co, said on Sunday it signed on agreement with DaimlerChrysler AG and partner Mitsubishi Motors Corp to launch a passenger car engine venture in the United States this month.

"The three companies will hold equal stakes in the joint venture, to be called 'Global Engine Alliance', which is scheduled for launch in the United States in early May," Hyundai said in a statement.

It is the second tie-up between South Korean and U.S. automakers in a week following a deal on Tuesday for General Motors Corp to buy key parts of bankrupt Daewoo Motor Co, the nation's third largest automaker in terms of sales.

The Hyundai joint venture will manufacture 1.8 to 2.4 litre gasoline engines beginning in March 2004, with annual production slated at 1.5 million units, the statement said.

DaimlerChrysler Mitsubishi and Hyundai have been in talks on the deal for some time.

DaimlerChrysler holds stakes in both Hyundai and Mitsubishi. The U.S.-German automaker formed a diesel engine joint venture last year with Hyundai.