THE ambitions of Korean car makers know no bounds. Hyundai recently passed an important milestone in its short history when the ten-millionth export vehicle rolled off production lines in Ulsan, Korea.

The achievement marks Hyundai as the most accomplished of all the Korean car makers and the one most likely to break the hold of the so-called big six car makers within the next ten years.

The number of markets Hyundai exports to has grown in step with the global increase in the number of countries embracing the motor car.

In 1980, Hyundai vehicles were sold in only 38 countries, but the number has now grown to 193, with Iraq, Afghanistan and Tunisia accounting for the most recent additions.

At the same time, the number of dealers worldwide has passed 5,000. Export bases have been established through Hyundai subsidiaries in India and Turkey, which now serve markets worldwide.

By far the most popular Hyundai export model has been the company's Accent, which has accounted for 2.1 million of the ten million total, followed by the Elantra, which in its three versions make up 1.72 million units of the total. Yet neither of these models had the distinction of being the ten-millionth export.

That fell to a Tucson 4x4 that was export-bound for France.

Commenting on the achievement, Kim Dong-Jin, Hyundai Motor Company (HMC) vicechairman and chief executive officer, said: "What we are really celebrating is the growth of the Hyundai family, which now extends to ten million satisfied customers around the world, a fact that makes us especially proud."

The company is master of its own destiny again after DaimlerChrysler sold its 10.5 percent stake in a move expected to raise more than $900m.

The move came as no surprise.

It has been forced to re-evaluate its strategic alliances in the wake of the disastrous decision to walk away from cash strapped Mitsubishi earlier this year. But the Hyundai deal was still good business for DaimlerChrysler.

The company bought the stake for $484m in 2000 and 2001.

The split between Daimler and Hyundai was expected after the two companies said earlier this year that they wanted to scale back their relationship.

But this being a global market, the two companies will continue to work together on a number of common projects, including a joint purchasing project and plans to build a four-cylinder engine with Mitsubishi.

DaimlerChrysler will also continue to supply Hyundai with its OM906 six-cylinder engines for use in medium buses.

The two fell out amid Daimler's desire to pursue alliances with car makers in China. Daimler signed a deal to build Benz's in partnership with Beijing Automotive.

Hyundai felt the arrangement cut across its own agreement with Beijing Automotive.

The Koreans felt their contract prevented the Chinese entering into other joint ventures until its deal with Hyundai expired, thereby locking competitors out of the potentially massive Chinese market.

DaimlerChrysler bought a stake in Hyundai as part of chief executive officer Juergen Schrempp's effort to build a global auto powerhouse with a presence in all major markets.

But the company's strategy in Asia began to come undone with losses at Japan's Mitsubishi Motors Corp, where DaimlerChrysler had a 37 percent stake.

That holding has been diluted to less than 25 per cent after DaimlerChrysler cut off further investment in April and Mitsubishi was forced to raise capital from other sources.

Published: 07/09/2004