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SEOUL, South Korea (AP) -- DaimlerChrysler AG has decided to sell its 10.5 percent stake in South Korea's Hyundai Motor Co. and is sharply scaling back other aspects of their 4-year-old partnership, the companies said Wednesday.

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 DaimlerChrysler CEO Juergen Schrempp's effort to build a global auto giant with a presence in major markets worldwide.

But that effort suffered a blow last month when DaimlerChrysler distanced itself from another Asian partner, Mitsubishi Motors, by refusing to put more money into the debt-laden company. It still owns a 37 percent stake in Mitsubishi, however.

Under Wednesday's agreement, Hyundai Motor will take over DaimlerChrysler's 50 percent stake in Daimler Hyundai Truck Corp., a joint venture truck engine-making factory in South Korea. The two sides also scrapped their earlier agreement to build a truck-making joint venture.

DaimlerChrysler spokesman Othmar Klein said the 50 percent truck stake is worth $45 million.

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figures, whats with them? mitzu is falling fast and what do they do? keep there stake. when hundai starts makeing a serious stride to being a decent car company, they go thier seperate ways? crazy if you ask me. :rudolph:
 

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sad thing is this is the STUPIDEST MOVE EVER IN HISTORY!

WHAT ARE THEY THINKING?!

let's just dump money in to a free falling mitsubishi...and sell off actually one of the few bright spots in the past three or four years for DCX as a company...all in the hopes of trying to impress the deutsche bank by making a "profit"?

why does this sound like their back turned to the grenade only to face the line of tanks
 

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:eek: It's my understanding that DC is eager to rid itself of Mitsubishi but getting the shares marketable will take time. And then you have to locate a buyer who wants a stake in a company that has created a huge debt by extending credit to any prospective buyer with a pulse.

Given Hyundai's growth it does seem odd to dump them when they have the full line of "entry" products for the United States and growing reputation for quality and reliability
 
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