SEOUL -- Hyundai Motor Co. said on Wednesday that it and Germany's ZF Friedrichshafen have canceled a preliminary plan of jointly developing automatic transmissions.
Hyundai and the Germany's third-largest automotive supplier signed a memorandum of understanding in September 2003 to jointly develop next-generation automatic transmissions, but since then no progress has been made, a Hyundai official said.
"Hyundai Motor decided to develop them on its own to enhance its own technology for major automotive parts," the company said in a disclosure to the Korea stock exchange.
The South Korean carmaker planned to complete the development by the end of 2007, it added.
Officials of ZF in its Korean offices could not immediately been reached for comments.
Hyundai, which wants to become one of the world's top six car makers by 2010, has been trying to improve auto quality via acquisitions and alliances.
It has been bidding for South Korean auto parts maker, Mando Corp., after teaming up with German engineering group Siemens to buy a controlling stake in another local car parts maker, Hyundai Autonet in July for $231.3 million.
In early November, the both firms also set up a joint venture called Carnes to make brake systems.