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SEOUL (Bloomberg) Hyundai Motor Co., South Korea's largest automaker, said its new venture with DaimlerChrysler AG and Mitsubishi Motors Corp. will use an engine based on its technology and lead to royalty payments from the partners.
The automakers will each make 500,000 passenger car engines, based on Hyundai Motor's newly developed model. The 1.8 to 2.4- liter engines will be made at the automakers' own plants and be used for their own future models. The Korean automaker expects to receive royalty payments for its engine design starting in 2005.
The three automakers signed an accord yesterday to set up a venture for the design and development of four-cylinder gasoline engines. The venture, called Global Engine Alliance L.L.P., will be equally owned by the three companies. DaimlerChrysler owns 10.5 percent of Hyundai Motor and 37 percent of Mitsubishi Motors and is looking for ways to reduce costs and risks in developing cars.
"The agreement is a sign that Hyundai Motor has gained acceptance for its technology for engines used in smaller cars," said Lee Young Seog, who manages 500 billion won ($390 million) at Dongwon BNP Investment Trust Management Co. "The next step for Hyundai will be to raise its competitiveness for engines for bigger cars."
Hyundai Motor will begin using the engines for its own cars in March 2004, DaimlerChrysler will start using the engines in June 2005 and Mitsubishi Motors will begin using the engines in March 2006.
DaimlerChrysler and Hyundai Motor formed a venture last year to produce engines for commercial vehicles.
Let's use carsdirect prices since they are easily available to anyone.
03 Tiburon GT V6 with Option Package 17 (sunroof, power package, etc) $18,960
03 Eclipse GT V6 with Sun, Sound, Leather package $21,486
03 Tiburon at 6.3% = $369 p/ month03 Eclipse at 1.0% (it won't let you calculate 0.0% on bankrates calculator) = $367 p/ month.
So the Eclipse has closed an almost $3000 gap. Neither of these cars are winning the resale value race right now so you would be equally upside down in the Tiburon since you are paying interest where even if you don't make payments for a year in the Eclipse when you do start making payments all of the money will go to your principal.
I'm not trying to sell the Eclipse here but if you compare the 2 the Tiburon isn't the raging bargain that people make it out to be.
2013 Civic SI, 2009 Outback Sport 5-spd (stick)
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