Hyundai, Renault Form Joint Venture in Malaysia

09/05/96

Reuters has reported that Korea's Hyundai Motor Co Ltd announced on Tuesday that it will form a joint venture with France's Renault to build a vehicle plant in Malaysia. A Hyundai official said the venture would produce 20,000 commercial vehicles a year and will also involve the Malaysian government and Malaysian companies.

Hyundai said it would sign contracts to make the deal formally official on September 6; Production is slated to begin in the second half of 1997. Hyundai and Renault would each hold a 15 percent stake in the venture, while the Malaysian government and companies would have the remaining 70 percent. The plant will produce Renault's mid-sized buses late next year and Hyundai's small trucks starting in 1998. Hyundai put truck production goals at 1,500 units in 1998, increasing to 7,000 units by 2000.

Paul Dever -- The Auto Channel