While the debate about DaimlerChrysler’s relationship with troubled Mitsubishi Motors continues, a source suggests that the multinational plans to sell a 10,5 per cent stake in Hyundai.

While the debate about DaimlerChrysler’s relationship with troubled Mitsubishi Motors continues, a source suggests that the multinational plans to sell a 10,5 per cent stake in Hyundai.


CARtoday.com reported on Friday that Juergen Schrempp would remain the chairman and chief executive of DaimlerChrysler, despite the fact that he and two other management members offered to resign following the board’s rejection of a plan to capitalise Mitsubishi, in which the multinational holds a 37 per cent stake.


However, an official at Hyundai has told Reuters that DaimlerChrysler planned to sell a 10,5 per cent stake in the South Korean manufacturer worth nearly R6,9 billion via a block sale.


The official denied a report that Hyundai would buy back the stake from DaimlerChrysler, but added: "The German carmaker is seeking to sell the stake via a block sale to other buyers."


And sources on DaimlerChrysler's supervisory board told that it would drop plans to form a commercial vehicles joint venture with Hyundai and confirmed that the Stuttgart-based company wanted to sell its holding.


DaimlerChrysler’s chief financial officer Manfred Gentz was quoted as saying that the future of the investment was open.


Hyundai had said last week it was planning to scale back its partnership with the Stuttgart-based group to work on a project-by-project basis rather than in a full alliance.


The news agency added that the two companies have been in talks to produce commercial vehicles and engines in China, but the relationship soured.


Hyundai suspended the talks, aimed at forming a joint venture, after Daimler signed a deal with Beijing Automotive Industry Holding, which Hyundai said violated its own agreement with the Chinese carmaker.

Original article from Car