DaimlerChrysler, Hyundai may co-develop car platforms

[Sci-Fi]

From AutomotiveNews Europe:

SEOUL -- DaimlerChrysler AG and Hyundai Motor Co. may co-develop platforms for compact passenger cars, a Hyundai Motor spokesman said on Tuesday.

"Daimler and Hyundai are mulling the joint development of a platform for small cars," said spokesman Jake Jang, confirming comments by the firm's President Kim Dong Jin.

"It will be a front wheel drive platform," he added.

Daimler, the world's number five automaker that holds a 10 percent stake in Hyundai, is seeking to maximize global alliances to cut costs and improve profitability.

Local Internet news providers reported Kim talking about the alliance at a ceremony on Tuesday to launch Hyundai's new compact "Click" in the domestic market.

The U.S.-German automaker signed a joint venture earlier this month with Hyundai Motor and Mitsubishi Motors Corp. to design and develop car engines.

Jang also denied a report on Tuesday in the Chosun Ilbo daily that the automaker would transfer subcompact passenger car production to its affiliate, Kia Motors Corp., by 2005.

"The report is not true," he said. "We have not considered such a move."