DaimlerChrysler, Hyundai, Mitsubishi to develop "World Car"

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SEOUL--DaimlerChrysler has bought a 10% stake in Hyundai Motor for $430 million, a major step toward realizing a "world car project". DaimlerChrysler also owns a 34% share in Mitsubishi Motors.

The three companies plan to share technology and jointly produce a new generation of small cars initially aimed at China's promising market. The high-fuel economy cars would also target emerging markets in Eastern Europe and Southeast Asia.

"In such a three-continent alliance you could imagine as much as 300,000 to 400,000 vehicles a year, but that's speculation," says a Hyundai Motor official.

DaimlerChrysler and Hyundai are also making a joint bid for troubled Daewoo Motor, which has expanded aggressively into former Soviet republics, Eastern Europe and Southeast Asia.

Copyright June 2000, Crain Communications Inc.

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