DaimlerChrysler, Hyundai, and Mitsubishi Motors to Form Global Engine Alliance

DaimlerChrysler AG, Hyundai Motor Company, and Mitsubishi Motors Corporation announced on May 5, 2002 the formation of a joint venture company for the design, development, and engineering of a new family of in-line four cylinder gasoline engines. Global Engine Alliance L.L.C. will jointly develop these engines through the combined resources of all three companies. The engines will be used in future generations of vehicles of the Chrysler Group, Mitsubishi Motors, and Hyundai Motor. The new joint venture company will be owned equally by all three companies and will be located in the United States. By combining re-sources, the engine will have the most competitive technologies of the Chrysler Group, Hyundai and Mitsubishi. Each company will produce the engine for future vehicle applica-tions. Under the new joint venture, Hyundai will have the lead responsibility for implementing the decisions of the joint venture company for design, development, and engineering. The engine will be an aluminium engine with displacements of 1.8, 2.0 and 2.4 liters in the range of 120 to 165 horsepower. With this range of displacement, each company will utilize the engine in a wide variety of vehicles for various market segments. Each company will produce the engine for its own vehicles with the total production of engines expected to approach 1.5 million units annually. With the signing of the joint venture agreement, the new company will begin operations in May 2002. Initial production of engines by Hyundai is expected by March 2004, with Chrysler and Mitsubishi engine production planned to start in 2005.