Hyundai-DaimlerChrysler in Mexico

Hyundai Motors will penetrate into the Mexican market by selling its minicar Atos under the brand name of DaimlerChrysler.

Company officials said July 12 that Hyundai is now negotiating with DaimlerChrysler`s subsidiary in Mexico to market 35,000 minicars annually in Mexico, adding that a formal contract will be signed within this month.

Hyundai plans to export minicars to Mexico under the `Dodge` brand, which is affiliated with DaimlerChrysler. The officials said that it is the first fruit since the comprehensive tie-up agreement signed between Hyundai and DaimlerChrysler at the end of this June. They explained that Hyundai was unable to enter the market in principle since the Mexican government allows sales to those carmakers which have manufacturing facilities in Mexico.

The Mexican auto market is estimated at around 1.65 million cars, including 1 million units of passenger cars. Currently, DaimlerChrysler enjoys a 23% share in the market as the leading car manufacturer in the country. In addition to DaimlerChrysler, Volkswagen, General Motors, Ford Motors and Nissan Motors run local manufacturing plants in Mexico.