Bering suspends operations, in dispute with Hyundai

FRONT ROYAL, Va. (June 25, 2001) — Bering Truck Corp., the company that was making and importing to the United States a line of Class 3-8 trucks in partnership with Hyundai, has suspended operations and is pursuing legal action against Hyundai for dumping them in favor of an alliance with DaimlerChrysler.

Bering Truck Corp. and Bering Truck Distribution, based in Front Royal, Va., signed an agreement with Hyundai in 1998 to be the exclusive U.S. commercial truck distributor for the Korean company. They established a dealer network, built a truck assembly facility, and marketed the Bering truck line.

Last year, DaimlerChrysler acquired a large stake in Hyundai. At the same time, Hyundai entered into a worldwide commercial truck venture with DaimlerChrysler. In June 2000, DaimlerChrysler announced that the joint venture would market Hyundai’s trucks in North America through DaimlerChrysler subsidiaries Freightliner and Sterling.

At that time, Bering and Hyundai made an announcement that Bering would remain Hyundai’s distributor in the United States. However, according to a statement released last Thursday by Bering’s lawyers, Hyundai at the same time was trying to terminate Bering as its U.S. distributor.

“The Bering Truck companies want their dealers and their customers to know that we explored all options in trying to continue the distribution of commercial trucks in the U.S.,” says William Anderson, president and CEO of both Bering companies. “These options included offering the distribution business to Hyundai or a Hyundai designee so that our dealers and customers could continue their relationship with the Bering Truck product, but Hyundai rejected each and every proposal made by the Bering Truck companies.”

Source: truckinginfo.com