FT: Hyundai, DaimlerChrysler in talks on alliance

LONDON, April 21, 2004; Jean Yoon writing for Reuters contributed to this report DaimlerChrysler AG and Hyundai Motor Co. Ltd. (KSE:005380.KS - News) are in talks about the future of their alliance amid doubts about plans to build commercial vehicles and engines together, the Financial Times Web site reported on Wednesday.

Citing people close to the situation, the newspaper said that Hyundai felt it no longer needed its German partner after its emergence as one of the world's fastest-growing carmakers.

The newspaper said the alliance was approaching a "critical juncture" and a "significant announcement" could come soon.

A spokesman for Hyundai said the two firms have been in talks on various issues but declined to reveal what they were and whether it planned to cut ties with DaimlerChrysler.

DaimlerChrysler owns 10 percent of Hyundai with which it already makes truck engines.

The newspaper said that high-level talks about the future of the alliance had been going on for months and that Hyundai last year appointed investment bankers to consider the company's options -- including severing ties with Daimler.