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Three Car Makers Team to build a one-litre "world car".

7 May 2000

    SEOUL - Hyundai announced today that they will be teaming up with
Mitsubishi and DaimlerChrysler AG to build a one-litre "world car".
Commercial production will begin in 2002 and they hope to jointly sell
between four to five million units over the first five years.

    The announcement stated that Hyundai will begin to produce 300,000-350,000
units of the car annually in Korea and 100,000-150,000 in China.
Mitsubishi will produce 100,000-200,000 units annually in Japan and
DaimlerChrysler will add 250,000-300,000 units to be build in Europe
starting 2003.

    The three car makers believe that the joint ownership of key components
such as platform, engine and transmission will contribute to cutting
production costs and enhancing product competitiveness.

    The world car is expected to have an engine displacement of 1,000 cc to
1,500 cc.  Vehicles with this size engine are becoming increasingly popular
throughout the world because of their fuel efficiency and lower emissions
level.

    Hyundai said it would invest about $1 trillion in the next five years for
the project.   A vehicle name and design specifications were not revealed.


MJR