DaimlerChrysler, Hyundai may co-develop car platforms

SEOUL, May 21 Reuters reported that DaimlerChrysler AG and South Korea's largest automaker Hyundai Motor Co may co-develop platforms for compact passenger cars, a Hyundai Motor spokesman said on Tuesday.

"Daimler and Hyundai are mulling the joint development of a platform for small cars," Jake Jang told Reuters, confirming comments by the firm's President Kim Dong-jin. "It will be a front wheel drive platform," he added.

Daimler, the world's number five automaker that holds a 10 percent stake in Hyndai, is seeking to maximize global alliances to cut costs and improve profitability.

Local Internet news providers reported Kim talking about the alliance at a ceremony on Tuesday to launch Hyundai's new compact "Click" in the domestic market.

The U.S.-German automaker signed a joint venture earlier this month with Hyundai Motor and Mitsubishi Motors Corp to design and develop car engines.

Hyundai Motor shares were down 5.9 percent at 46,500 won at 0356 GMT, while the broader stock market index was down 1.24 percent at 855.05 point.

Jang also denied a report on Tuesday in the Chosun Ilbo daily that the automaker would transfer subcompact passenger car production to its affiliate, Kia Motors Corp by 2005.

"The report is not true," he said. "We have not considered such a move."