DaimlerChrysler announced on Wednesday it would sell a R7 billion stake in Hyundai, further scaling down the multinational's ties with manufacturers in Asia.

DaimlerChrysler announced on Wednesday it would sell a R7 billion stake in Hyundai, further scaling down the multinational's ties with manufacturers in Asia.


As a part of the agreement, the two firms will end a South Korean truck engine joint venture, with Hyundai buying DaimlerChrysler's 50 percent stake for R350 million. They will also end talks to set up a comprehensive commercial vehicles joint venture in South Korea, reported.


"Both companies have agreed that successful co-operation on a per-project basis is possible without a shareholding relationship," the carmakers said in a joint statement.


The long-expected sale follows DaimlerChrysler's decision in April to halt financial support to Mitsubishi Motors in which it will retain its soon-to-be diluted 37 per cent stake.


However, DaimlerChrysler's head of commercial vehicles, Eckhard Cordes, said the US-German multinational was not in a hurry to sell its 10,5 per cent stake in Hyundai Motor.


"That doesn't necessarily have to take place this year," Cordes said, adding that the company had not decided whether to sell to "some investors or place the shares widely on the market".


DaimlerChrysler will continue to co-operate with Hyundai and Mitsubishi on its "World Engine" project through its Chrysler unit.


Separately, Daimler received approval early last week to build roughly 25 000 C- and E-Class sedans annually in China starting in 2006. The company also plans to produce heavy and medium-duty trucks such as the Actros in China with local partner Beijing Automotive Industry Corporation.

Original article from Car