Seoul, Oct 11: Hyundai Motor will provide Daimler-Chrysler with 35,000 mini-cars annually under the first deal signed since the US-German automaker took a 10 per cent stake worth 480 billion won ($430 million) in South Korea's largest carmaker in June.Daimler-Chrysler will sell the sub-compact model in Mexico under its Dodge brand name.
A Hyundai official said under a deal signed on Tuesday, sales in Mexico would likely start in mid-November, but gave no price.
The cube-shaped model sells for $6,000 to $7,000 in South Korea as the Atoz for "A to Z".
The two later teamed up in a failed joint bid for unlisted Daewoo Motor.Daimler-Chrysler sells vehicles under the Mercedes, Chrysler, Dodge and Jeep brand names in Mexico, where it holds a 24 per cent market share. The Hyundai model will give it a footing in the small auto segment.
The Dodge Neon sedan is currently the smallest car Daimler-Chrysler sells in Mexico.
Hyundai sells vehicles in the United States and Canada but not Mexico, where imports are banned if carmakers do not have local plants.
Hyundai's vehicle sales during the first nine months of this year totalled 1,132,429 units, up 23.1 per cent, up from 920,288 units a year earlier, the company said.
Its shares were down 4.1 per cent at 13,400 won, outperforming the benchmark index which was off 5.73 per cent.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.