Hyundai Motor Corporation will decide soon if
it will expand its alliance with DaimlerChrysler after the deal has been delayed several times.
A a decision is expected by the end of June as to whether the Korean car manufacturer will pursue or sever an alliance with DaimlerChrysler AG to establish a joint venture to produce trucks.
Under the original plan, Hyundai and DaimlerChrysler planned to set up a truck joint.
"The deal cannot be delayed forever. Hyundai Motor will make a decision by the end of the first half," a source close to the deal said.
"Both sides don't feel any urgent need to press ahead with the talks."
The source, however, ruled out the possibility of any announcement being made in April.
The continued delays reflect a number of outstanding issues, with DaimlerChrysler busy rescuing its alliance with Japan's indebted Mitsubishi Motors.
Hyundai Motor also does not need partnership with DaimlerChrysler's as strongly as before, given
it is expanding its global market share at a fast rate on its own branding power.
A Hyundai spokesperson said: "There are no ongoing talks. We have nothing to say beyond that at this point."
They put the deal on hold last October as their relations soured after DaimlerChrysler struck a joint venture deal with Beijing Automotive Industry Holding Corp (BAIC) to produce its Mercedes-Benz E- and C-Class sedans from 2005.
Hyundai Motor has said that BAIC, also a Hyundai partner, breached an agreement preventing the Chinese motor company from entering into any joint auto-production deal with firms other than Hyundai in agreeing to form an alliance with DaimlerChrysler.
In June 2000, DaimlerChrysler bought about a 10% stake in Hyundai Motor as part of a strategic alliance and was awarded an option to buy an additional 5% stake by the end of 2009.
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