SEOUL -- Hyundai Motor Co. said Friday that it would absorb its wholly owned truck engine unit, ending speculation that it might seek a strategic partner for it.
The announcement came more than a week after DaimlerChrysler AG severed its alliance with the Korean carmaker by selling its 10.5 percent stake in Hyundai for $912 million in mid-August.
"Hyundai Motor sought the merger to save investment costs and enhance efficiency by focusing our capacity on developing engines for large-size commercial vehicles," the company said in a filing to the Korea Stock Exchange.
The venture was set up with the U.S.-German auto giant, but Hyundai bought another half of the stake in the unit from DaimlerChrysler for $52.04 million after DaimlerChrysler said in May that it would dispose of its shares in Hyundai.
There had been market talk that Hyundai might search for another foreign partner to support the venture. But analysts had said it would be difficult for Hyundai to find a new strategic partner as global giants such as Ford Motor Co. and General Motors were seeking overseas expansion on their own.