Daimler to Sell 10.5% Stake in Hyundai

DaimlerChrysler has decided to sell its 10.5% stake in South Korea’s Hyundai Motor Co. and is sharply scaling back other aspects of their 4-year-old partnership, the companies said.

The two automakers have agreed to “realign the alliance in order to reflect more realistically current market conditions,” the companies said in a joint statement.

Hyundai has been one part of Daimler Chief Executive Juergen Schrempp’s effort to build a global auto giant with a presence in major markets worldwide.

Under the agreement, Hyundai Motor will take over DaimlerChrysler’s 50% stake in Daimler Hyundai Truck Corp. in South Korea. DaimlerChrysler and Hyundai, however, will continue their project with Mitsubishi Motors Corp. of Japan to develop and make a family of four-cylinder gasoline engines.